307 8.7 A project is estimated to cost $2,000,000 and the isosceles triangles in Fig. 8.7 are an approxi- mation for the cash flow plan. If the periods now represent quarters, then prepare a cash-flow plan matching dollars commitment to dollars expenditure. When is the approximate midpoint of the commitment and expenditure triangles? What is the difference in money at this time? Discuss the reasons for wanting to know the differences between commitment and expendi- ture cash flows. (Hints: Eyeball the isosceles triangles for the midpoints. These midpoints give the cash flows, and their difference is a ball-park requirement for cash-flow loans or other monies to meet obligations. If bank loans are necessary, then this is the loan requirement.) Commitment 31.2% 42.2% Expenditure Dollars/period 28.0% 18.8% 0.8% 0.5% 4.5% 20.0% 35.0% 7.0% 12.0% E= 0 Period Figure 8.7 Matching commitment and expenditure to period. 307 8.7 A project is estimated to cost $2,000,000 and the isosceles triangles in Fig. 8.7 are an approxi- mation for the cash flow plan. If the periods now represent quarters, then prepare a cash-flow plan matching dollars commitment to dollars expenditure. When is the approximate midpoint of the commitment and expenditure triangles? What is the difference in money at this time? Discuss the reasons for wanting to know the differences between commitment and expendi- ture cash flows. (Hints: Eyeball the isosceles triangles for the midpoints. These midpoints give the cash flows, and their difference is a ball-park requirement for cash-flow loans or other monies to meet obligations. If bank loans are necessary, then this is the loan requirement.) Commitment 31.2% 42.2% Expenditure Dollars/period 28.0% 18.8% 0.8% 0.5% 4.5% 20.0% 35.0% 7.0% 12.0% E= 0 Period Figure 8.7 Matching commitment and expenditure to period