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Given the cost expenditures for a small project as shown in the following table, (1) Calculate the overdraft of each month and determine the peak
Given the cost expenditures for a small project as shown in the following table, (1) Calculate the overdraft of each month and determine the peak financial requirement; (2) Develop the cash flow profile (diagram) that is needed to calculate the rate of return of the project (3) Write out the procedures and formulas to calculate the rate of return of the project using the "interpolation method". You do NOT need to calculate the value of the rate of return. Assume: 20% markup: 10% retainage for the first two months only, Interest rate = 1% per month; Payments are billed at the end of a month and received one month later; The accumulated retainage will be returned to the contractor together with the last payment. Month 0 1 2 3 4 5 Direct cost $25,000 $58,000 $47,000 Indirect cost $5,000 $12,000 $3,000 Subtotal Markup Total billed Retainage withheld Payment received Overdraft Interest on overdraft balance (1%) Total amount financed
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