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A project with a six month duration has the following activities: Activity Months that work is scheduled Total Cost for Activity A [1, 2,
A project with a six month duration has the following activities: Activity Months that work is scheduled Total Cost for Activity A [1, 2, 3] B [2, 3] C [3,4] D [3,4,5] E [5,6] $9000 $8000 $4000 $6000 $8000 For example Activity 1 will start at the beginning of the first month and will finish at the end of the third month, a total of three months. During this time $3000 will be spent per month on Activity A. In addition to the amounts in the table the company will spend $2000 per month on overheads throughout the six months of the project. At the end of each month the company will invoice the client for costs incurred during that month, including the indirect cost, and will be paid at the end of the next month. For example the company will receive its first payment of $5000 at the end of the second month to cover the costs of Activity A incurred in the first month ($3000) and the overheads for the first month ($2000). The final payment will occur at the end of the seventh month and will include an extra $5000 to cover the contractor's fee/profit What is the maximum overdraft required by the contractor to carry out this project as planned?
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