Activity	Duration	Predecessor	Cost
A	8	-	25000
B	12	-	42000
C	7	A	18000
D	10	A	27000
E	14	B,C	46000
F	5	B,C	12000
G	3	D,E	7000
H	12	D,E	42000
I	10	F,G	36000

Consider the following project data. Assume costs are incurred upon completion of an activity. At the end of the project a lump sum payment of 340,000 is to be made.

a) Find the net present value of the project at a discount rate of 3% per period.

Activity	Crashed Duration	Normal Duration	Crashed Cost	Normal Cost
C	5	7	22000	18000
E	11	14	58000	46000
I	8	10	44000	36000

b)Given an option is available to reduce the duration of following activities at additional cost, what would be the optimal project duration? Assume indirect costs to be negligible.