A contractor is planning to bid on a construction project that is expected to take six months to be completed. The contractor has estimated its actual total cost to be $932,000 spread out over the six months as follows: Month 1 2 3 4 5 6 Total Cost $124,000 $172,000 $214,000 $177,000 $ 146,000 $99,000 $932,000 The contractor aims for a markup of 7 percent of the total cost of the project. The retainage is 10 percent and the owner reimburses the contractor a month after the submission of the monthly pay request (progress payments). Interest (annual percentage rate, APR) is 12 percent, compound monthly. What is the minimum line of credit the contractor needs? This is the maximum overdraft the contractor expects to face during the project. In which month does this maximum overdraft happen? What is the net profit of the contractor? Hint: deduct the interest cost from the gross profit (based on a 7% markup). A contractor is planning to bid on a construction project that is expected to take six months to be completed. The contractor has estimated its actual total cost to be $932,000 spread out over the six months as follows: Month 1 2 3 4 5 6 Total Cost $124,000 $172,000 $214,000 $177,000 $ 146,000 $99,000 $932,000 The contractor aims for a markup of 7 percent of the total cost of the project. The retainage is 10 percent and the owner reimburses the contractor a month after the submission of the monthly pay request (progress payments). Interest (annual percentage rate, APR) is 12 percent, compound monthly. What is the minimum line of credit the contractor needs? This is the maximum overdraft the contractor expects to face during the project. In which month does this maximum overdraft happen? What is the net profit of the contractor? Hint: deduct the interest cost from the gross profit (based on a 7% markup)