ENGNEERING ECONOMICS

The project started on June 1, 2016

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Case Description and Questions A mutual agreement is signed between a customer and a construction company. The construction company has divided the project flow into 10 meaningful parts to complete this 4- year project. The construction company has prepared a departmental cost estimate for the project (see Excel file for details). Use Excel functions* to answer the following question: 8. Which choice is better for the company for the Metal division ("Misc Iron, Division 4): 2 installments as stated, or 10% additional cost at the end of the project? Note: Unless otherwise stated, you may receive 1% monthly interest. Item Structrul Stee Decking & Siding Misc Iron Division 4 Metals Quantity Unit Cost Start Date End Date Payment Method 2.440 $1.700 1.June 2017 1. June 2019 Pay in 2 equal installments 2.000 $980 1.June 2017 1.June 2019 Pay in 2 equal installments 4.000 $800 1.June 2017 1.June 2019 Pay in 2 equal installments Duration/Span Cost for overall period Cost for overall period Cost for overall period