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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 projects net cash flow for a 10-percent markup.

Estimate the proper markup for 1%, 1.5%, and 2% rate of return per month

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TABLE P6.2 Project Bar Chart Activity Month 3 1 2 4 $2,000 $1,200 $3,000 1. Survey 2. Mobilization 3. Trench 4. Lay pipe 5. Concrete 6. Backfill 7. Move out $6,000 $3,000 $3.00 $500 $500 $500 $500 $1,000 8. Prepare valves 9. Install valves $1,000 10. Test $1,500 TABLE P6.2 Project Bar Chart Activity Month 3 1 2 4 $2,000 $1,200 $3,000 1. Survey 2. Mobilization 3. Trench 4. Lay pipe 5. Concrete 6. Backfill 7. Move out $6,000 $3,000 $3.00 $500 $500 $500 $500 $1,000 8. Prepare valves 9. Install valves $1,000 10. Test $1,500

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