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A contractor has a five-month project with the expected direct costs as follows: 1^st month-$25,000, 2^nd month- $40,000, 3^rd month- $65,000, 4^th month - $80,000,
A contractor has a five-month project with the expected direct costs as follows: 1^st month-$25,000, 2^nd month- $40,000, 3^rd month- $65,000, 4^th month - $80,000, and 5^th month- $30,000 It is assumed that (1) the monthly indirect cost is $6,000; (b) retainage is 10% for the first three months, and 0% thereafter; (c) the markup is 25%; and, (d) the monthly interest rate is 1%. The contractor submits payment requests at the end of each month, and payments are received at the end of the next month. The accumulated retainage will be paid to the contractor with the last payment. 1) Create an overdraft calculation table. 2) Draw an overdraft profile plot. 3) Calculate the present values of profits at interest rates 0%, 6%, and 10%
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