Assume that the organization will receive a $400 bonus for each day the duration of the project is shortened. The organization is also responsible for paying the crash cost associated with shortening the schedule. To maximize the net profit, identify which task you should crash and by how much.

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You will receive a bonus for every day that a task is cut. It’s important to determine which tasks should be abandoned and why. To do this you will need to calculate both the cost of reducing each task and its impact on your overall project timeline (i.e. how many work days can be saved by crashing that task).

Once these figures have been determined, you can then compare them in order to find the most cost-effective solution – that is, which task will provide the largest reduction in project duration at the lowest possible cost? While each person’s situation might be different, the general rule of thumb is that tasks which are close to completion and require little effort or resources would be good candidates.

For example, if Task A requires 50 hours & costs $500 to crash while Task B requires 100 hours & costs $1000 to crash but both yield similar reductions in overall project duration then it would make more sense from an economic standpoint to opt for crashing Task A instead since it provides greater savings ($400 bonus per day x number of days reduced) than what was spent crashing it in the first place ($500).

When trying to maximize profits by shortening project times, it is important that one carefully evaluate factors like time/cost requirements and potential effects on overall completion times.

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