The time cost estimates for the various activities of a design project are given below: Normal Normal Cost Crash Time Crash Cost Activity Immediate 22108 predecessor Time (days) ($) (days) (S) A 2 50 1 70 B A 80 2 160 C A 8 70 4 110 D A 6 60 5 80 E B 7 100 6 130 F D 40 3 100 G E, F 5 100 4 150 The indirect costs for each project duration are given below: Project 18 17 16 15 14 13 Duration (days) Indirect 400 350 300 250 200 150 Cost (S) Find the optimum cost time schedule for the project. (9)

EBK HEALTH ECONOMICS AND POLICY
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Author:Henderson
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Chapter4: Economic Evaluation In Health Care
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D1
Economics
The time - cost estimates for the various
activities of a design project are given below:
Activity Immediate Normal
Normal Cost Crash Time
Crash Cost
221
predecessor
Time (days)
($)
(days)
(S)
A
2
50
1
70
B
A
4
80
2
160
C
A
8
70
4
110
D
A
6
60
5
80
E
B
7
100
6
130
F
D
4
40
3
100
G
E, F
5
100
4
150
The indirect costs for each project duration are given below:
18
17
16
15
13
Project
Duration
(days)
Indirect
400
350
300
250
150
Cost (S)
Find the optimum cost time schedule for the project.
14
200
(9)
Transcribed Image Text:Economics The time - cost estimates for the various activities of a design project are given below: Activity Immediate Normal Normal Cost Crash Time Crash Cost 221 predecessor Time (days) ($) (days) (S) A 2 50 1 70 B A 4 80 2 160 C A 8 70 4 110 D A 6 60 5 80 E B 7 100 6 130 F D 4 40 3 100 G E, F 5 100 4 150 The indirect costs for each project duration are given below: 18 17 16 15 13 Project Duration (days) Indirect 400 350 300 250 150 Cost (S) Find the optimum cost time schedule for the project. 14 200 (9)
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