A project has the activity duration and cost information indicated in the table where all times are in weeks.There is a penalty of $4,000 per week for every week the project exceeds 37 weeks.What is the lowest total cost for completing this project?
A) $172,000
B) $184,000
C) $187,000
D) $192,500

Question

A project has the activity duration and cost information indicated in the table where all times are in weeks.There is a penalty of $4,000 per week for every week the project exceeds 37 weeks.What is the lowest total cost for completing this project? 
A) $172,000 
B) $184,000 
C) $187,000 
D) $192,500

Quizplus · Accepted Answer

To find the lowest total cost for completing this project, we need to perform a critical path analysis. The critical path is the longest sequence of activities that determines the earliest possible completion time of the project. In this case, the critical path is A-B-E-G-I-J, which has a duration of 34 weeks.

Therefore, the project can be completed within the given deadline of 37 weeks. Hence, there is no penalty.

The total cost of the project is the sum of the costs of all the activities on the critical path.

Total cost = $12,000 + $15,000 + $25,000 + $14,000 + $18,000 + $20,000 + $13,000 = $117,000

Therefore, the best choice is B, with the lowest total cost of $117,000.

A Project Has the Activity Duration and Cost Information Indicated