Question
Direct costs of a project are shown on the following bar chart (see Table P6.2). Assume -> $500 per month indirect cost and 10% retainage
Direct costs of a project are shown on the following bar chart (see Table P6.2).
Assume -> $500 per month indirect cost and 10% retainage with payment time lag of one month.
Calculate the project?s net cash flow for a 10-percent markup.
Estimate the proper markup for 1%, 1.5%, and 2% rate of return per month
TABLE P6.2 Project Bar Chart Activity 1. Survey 2. Mobilization 3. Trench 4. Lay pipe 5. Concrete 6. Backfill 7. Move out 8. Prepare valves 9. Install valves 10. Test 1 $2,000 2 $1,200 Month 3 $3,000 $6,000 $3,000 4 $500 $500 $1,000 $1,000 5 $500 $500 $1,500
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Managerial Accounting
Authors: Ray Garrison, Eric Noreen and Peter Brewer
14th edition
978-007811100, 78111005, 978-0078111006
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