Business, 30.03.2021 19:20 bryantjorell

Suppose you are trying to decide whether or not it makes sense to crash your project. You know that normal project duration and direct costs are 60 days and $125,000. You are worried, though, because you have a very tight delivery schedule and the customer has placed a severe penalty into the contract in the form of $5,000 in liquidated damages for every day the project is late after 50 days. After working with the cost accountant, you have generated the following table of project costs at different completion durations: Project Duration (in days) Direct Costs Overhead Costs Penalty Charges Total Costs
60 $125,000 $15,500 $50,000
57 140,000 13,000 35,000
54 175,000 10,500 20,000
51 210,000 8,000 5,000
Complete the table. How many days would you advise the project should be crashed? Why?

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