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A petroleum service company has been hired to execute a project for an upstream petroleum company for a fee of US $100 million. The activities

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A petroleum service company has been hired to execute a project for an upstream petroleum company for a fee of US $100 million. The activities which make up the project are listed in Table 1: (a) What is the normal duration of the project? (5 marks) (b) What is the total cost of the project without crashing? (5 marks) (c) Determine which tasks which need to be crashed to reduce the project's duration by five months at lowest possible increase in cost to the petroleum service company. (10 marks) (d) What is the increase in cost as a result of crashing the project by five months? (5 marks) (e) If the client pays $1 million more for each month that the project's duration is reduced, explain whether or not the five-month reduction would be economically wise for the petroleum service company

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