The Tinker Construction Company is ready to begin a project that must be completed in 12 months. This project has four activities (A, B, C, D) with the project network shown next.

The project manager, Sean Murphy, has concluded that he cannot meet the deadline by performing all these activities in the normal way. Therefore, Sean has decided to use the CPM method of time-cost trade-offs to determine the most economical way of crashing the project to meet the deadline. He has gathered the following data for the four activities.

Use marginal cost analysis to solve the problem.

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STARTA FINISH Normal Activity Time Crash Time Normal Crash Cost Cost 8 months 5 months 9 months7 months 6 months4 months 7 months 4 months $25,000 $40,000 20,000 30,000 16,000 24,000 27,000 45,000