10% for profit) Estimated Cost $ 1,460,000 Bid Price $ 1,606,000 (estimated cost marked up Monthly Interest 0.50% Retainage 5% every payment payment received 30 days later Sum across Double check 2 3 4 5 6 7 8 9 10 Month Cost 1 $ 70,000 $ 150,000 $ 210,000 $ 250,000 $ 280,000 $ 265,000 $ 160,000 $ 75,000 $ $ $ 1,460,000 Invoice $ 73,150 $ 156,750 $ 219,450 $ 1,606,000 Amount Rec'd $ 73,150 $ 156,750 $ 1,606,000 Beginning of mon $ 70,000 $ 220,350 $ 358,302 $ 453,343 Interest $ 350 $ 1,102 $ 1,792 $ 2,267 Cash Required $ 70,350 $ 221,452 $ 360,093 $ 455,610 Profit: *Beginning of Month is the amount we use to calculate the interest. It's the amount you need to have available to get through the month The text is a little inconsistent on what they call cash requirement. I'm using the beginning of the month + interest Cash flow, chapter 3. This question is very similar to Example 3.2 and Figure 3.8 in our text. One difference is that the example retains 10% for half the project and here we are retaining 5% from every payment. In the 9th period you will invoice for the COST plus all the money retained previously (the same method as in the text). Fill in all the empty boxes, including the sum total of the interest paid and the total profit in the "double check column. Determine the actual profit after interest is paid ($42,483 in the example in the text). Determine the maximum amount of money required (it will be the largest number in the "Cash Requirement" line). Determine the total interest paid. 10% for profit) Estimated Cost $ 1,460,000 Bid Price $ 1,606,000 (estimated cost marked up Monthly Interest 0.50% Retainage 5% every payment payment received 30 days later Sum across Double check 2 3 4 5 6 7 8 9 10 Month Cost 1 $ 70,000 $ 150,000 $ 210,000 $ 250,000 $ 280,000 $ 265,000 $ 160,000 $ 75,000 $ $ $ 1,460,000 Invoice $ 73,150 $ 156,750 $ 219,450 $ 1,606,000 Amount Rec'd $ 73,150 $ 156,750 $ 1,606,000 Beginning of mon $ 70,000 $ 220,350 $ 358,302 $ 453,343 Interest $ 350 $ 1,102 $ 1,792 $ 2,267 Cash Required $ 70,350 $ 221,452 $ 360,093 $ 455,610 Profit: *Beginning of Month is the amount we use to calculate the interest. It's the amount you need to have available to get through the month The text is a little inconsistent on what they call cash requirement. I'm using the beginning of the month + interest Cash flow, chapter 3. This question is very similar to Example 3.2 and Figure 3.8 in our text. One difference is that the example retains 10% for half the project and here we are retaining 5% from every payment. In the 9th period you will invoice for the COST plus all the money retained previously (the same method as in the text). Fill in all the empty boxes, including the sum total of the interest paid and the total profit in the "double check column. Determine the actual profit after interest is paid ($42,483 in the example in the text). Determine the maximum amount of money required (it will be the largest number in the "Cash Requirement" line). Determine the total interest paid
