Table 11-8
A mad scientist has identified the ten steps required to create a race of atomic supermen to complete his plans for world conquest.The estimated time in weeks and cost in US dollars appear in the table along with the shortest possible duration for each activity and cost of those expedited activities.Activities are designated generically as A, B, and so on in order to avoid any copycat projects of this nature.

-Consider the project summarized in Table 11-8.Suppose in addition to the costs shown in the table, the mad scientist faces a $2,000 per week opportunity cost of not being in control of the world.Which of these activities should be crashed in an effort to deliver a minimum cost (both project and opportunity cost)project?
A)F
B)H
C)D

Question

Table 11-8
A mad scientist has identified the ten steps required to create a race of atomic supermen to complete his plans for world conquest.The estimated time in weeks and cost in US dollars appear in the table along with the shortest possible duration for each activity and cost of those expedited activities.Activities are designated generically as A, B, and so on in order to avoid any copycat projects of this nature.
 
-Consider the project summarized in Table 11-8.Suppose in addition to the costs shown in the table, the mad scientist faces a $2,000 per week opportunity cost of not being in control of the world.Which of these activities should be crashed in an effort to deliver a minimum cost (both project and opportunity cost)project?
A)F 
B)H 
C)D

Quizplus · Accepted Answer

To calculate the minimum cost including opportunity cost, we need to calculate the total cost for each activity if it is expedited and add the opportunity cost to that. Then we choose the activity with the lowest total cost.

- For activity F, the total cost for expediting it would be ($9,500 + $2,000) = $11,500.
- For activity H, the total cost for expediting it would be ($5,600 + $3,500 + $2,000) = $11,100.
- For activity D, the total cost for expediting it would be ($13,000 + $2,000) = $15,000.
- For activity C, the total cost for expediting it would be ($14,000 + $2,000) = $16,000.

Therefore, activity H has the lowest total cost when opportunity cost is included and should be crashed to deliver a minimum cost project.

Table 11-8 a Mad Scientist Has Identified the Ten Steps Required to Required