To 5 weeks at a cost of $30 direct costs. To crash by two weeks, reduce F. To 5 weeks @ $30; reduce D. By 1 week @ $50.

To crash by three weeks, reduce F. By 1 week @ $30; reduce D. By 2 weeks @ $100; reduce C. By 1 week @ $40. This way, a-D takes 19 weeks; C-E takes 19 weeks.

To crash by four weeks, reduce F. By 1 week @ $30, reduce D. By 2 weeks @ $100; reduce a by 1 week @ $80; reduce C. By 1 week @ $40; reduce E. By 1 week @ $100.

To crash by five weeks, reduce F. By 1 week @ $30; reduce D. By 2 weeks @ $100; reduce a by 2 weeks @ $160; reduce C. By 1 week @ $40; reduce E. By 2 weeks @ $200.

This gives us the following cost for each duration:

Duration

Indirect Cost

A

B

C

D

E

F

Total Cost

27

At three weeks (total project time 24 weeks), the incremental increase in cost is $30, more than the $10 discount being offered. We should therefore only take the discount offered for the weeks where costs are declining anyway, as…