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ABC Construction has developed the following set of activities for its budgeting process. Activity Predecessor Normal Activity Time (Days) Resulting Activity Time if Activity is

ABC Construction has developed the following set of activities for its budgeting process.

Activity Predecessor Normal Activity Time (Days) Resulting Activity Time if Activity is Crashed (Days) Total Cost to complete activity in Normal Time Total Cost to complete activity in Crash Time
A -- 4 2 $200 $600
B A 6 3 $300 $1200
C A 4 1 $300 $900
D B, C 3 2 $500 $550
E D 4 1 $500 $1700

Modify the problem as follows. There is now an indirect cost of $75 per day, which is in addition to the cost identified above. There is also a penalty cost of $200 per day for any project completion time over 11 days. What is the minimum cost schedule for the project and what is the total cost for this schedule? Identify what are the time and the path of this minimum cost schedule.

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