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Given the following cost expenditures for a small building project: Month 1 Month 2 Month 3 Direct costs $125,000 $25,000 $115,000 $20,000 $75,000 $15,000 Indirect
Given the following cost expenditures for a small building project: Month 1 Month 2 Month 3 Direct costs $125,000 $25,000 $115,000 $20,000 $75,000 $15,000 Indirect costs a. calculate the maximum overdraft and the ROR of the investment. b. as the second scenario, the owner will agree to the payment of a $65000 mobilization item ($40000 immediately on the commencement of the project and $25000 at the end of month 1) to the contractor. This will be deducted from the final payment to the contractor. For this scenario, calculate the maximum overdraft. Assume: Markup = 15% Retainage = 10% throughout the project Finance charge = 0.8% month Payments are billed at end of month and received one month later. Given the following cost expenditures for a small building project: Month 1 Month 2 Month 3 Direct costs $125,000 $25,000 $115,000 $20,000 $75,000 $15,000 Indirect costs a. calculate the maximum overdraft and the ROR of the investment. b. as the second scenario, the owner will agree to the payment of a $65000 mobilization item ($40000 immediately on the commencement of the project and $25000 at the end of month 1) to the contractor. This will be deducted from the final payment to the contractor. For this scenario, calculate the maximum overdraft. Assume: Markup = 15% Retainage = 10% throughout the project Finance charge = 0.8% month Payments are billed at end of month and received one month later
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