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.

Scheduling for financial analyst | Business & Finance homework help

To maximize the net profit of a project and receive the bonus for each day it is shortened, it is important to carefully identify which task should be crashed, and by how much. In order to do this, you must first calculate the crash cost associated with shortening each particular task as well as its potential impact on overall project duration (i.e., how many days could be saved if that particular task were to be crashed).

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? The answer might vary based on individual circumstances but typically those tasks that are near completion or require minimal resources/effort would make 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).

In conclusion, when trying to optimize profits through shortening project durations, one must carefully consider factors such as time/cost requirements for each task as well as their potential impacts on overall completion times before making any decisions.