7:59 TUTORIAL 1 TUTORIAL 1 A construction company is negotiating on a construction project with a six-month duration. On the last day of each month the construction company may bill the owner for the work completed during the month. The owner pays the monthly bills one month after they are received. For example, the construction company receives payment from work completed during June on July 31. The owner holds 10% retention Final payment is expected one month after completion of the project and will include payment of retention. The construction company pays material suppliers in full when it receives payment from the owner. The construction company pays the sub-contractors when it receives payment from the owner but withholds ox from the sub-contractor's payment. The construction company pays the labor weekly. The projected monthly material, labor and sub-contractors cost as well as the amount the construction company will bill the project's owner each month are shown in table 1. 1. Determine the monthly cash flow and the total cash generated by the project at the end of each month and just before each payment is received from the project's owner. 2. What is the maximum amount of cash invested by the company during the completion of the project? Month Materials (5) Labor ($) Sub.Con () Bill to Owners($) 1 30,400 34,900 54,700 129,600 2 57,300 48,900 123,800 248,400 3 80,500 73,100 136,400 313,200 4 29,200 34.000 106,800 183,600 5 27,800 26,200 66,000 129,600 6 15.400 11,300 43300 75,600 Total 240,600 228,400 531,000 1,080,000