Consider the following project B6 D12 G6 A4 F2 12 C3 E7 H8 Question 24. The contract for this project calls for 1. a penalty of US$ 5,000 for every day past day 25 2. an incentive of UWS$ 20,000 for completion by day 25 Indirect cost savings are US$ 1,000 per day saved The costs of crashing are: Activities B, D = US$ 3,000 per day // Activity H = US$ 4,000 a day // Activity E = US$ 6,000 Activity G = $ 8,000 4 points What are the economics of crashing the project to 25 days? Incentives Cost Penalties Ind cost savings Total Question 25 Y Does the contractor have an incentive to crash the project and meet the customer's target of a 25-day completion N Consider the following project B6 D12 G6 A4 F2 12 C3 E7 H8 Question 24. The contract for this project calls for 1. a penalty of US$ 5,000 for every day past day 25 2. an incentive of UWS$ 20,000 for completion by day 25 Indirect cost savings are US$ 1,000 per day saved The costs of crashing are: Activities B, D = US$ 3,000 per day // Activity H = US$ 4,000 a day // Activity E = US$ 6,000 Activity G = $ 8,000 4 points What are the economics of crashing the project to 25 days? Incentives Cost Penalties Ind cost savings Total Question 25 Y Does the contractor have an incentive to crash the project and meet the customer's target of a 25-day completion N