Alliance contracting company started trading in February 2019 and is in the process of producing the budget for the year 2020. During the year 2019, the contractor won and started three contracts. The value, starting date, duration and profit are as follows. Contract Month started Duration (month) Value (M) Profit (M) 1 February 12 1.6 0.16

2 June 18 4.7 0.47

3 October 15 2.3 0.23 a) Calculate the turnover for the year 2020 if no more contracts are won during that year (assume a uniform rate of value build up on every contract). (7 marks) b) Calculate the total value of contracts to be won during the year 2020 for the contractor to make 15% in gross profit more than that made in 2019, plus a payment of the annual instalment for a loan taken to purchase a head office building. The amount borrowed was 0.5 Million and to be paid back in equal instalments over the following 10 years (at an interest rate of 9%). You may assume that the average duration of projects to be started in 2020 to be 15 months. (10 marks) c) When analysing the market and the likelihood of winning contracts, it was found that the contractor during 2019 had a market share of 10% and a tender winning probability of 20%. If demand for construction in this market is expected to increase by 10%, calculate the percentage of the available market value the contractor should tender for in order to meet the profit targets set in (b). (7 marks) d) Discuss the contractor's market position from the calculations above and explain how these calculations can help the contractor in formulating effective strategies for the future. (Word limit 200 words) (9 marks)