Given the following cost expenditures for a small warehouse project (to include direct and indirect changes):

A. Calculate the peak financial requirement.

B. Sketch a diagram of the overdraft profile.

C. What would be the impact on the maximum overdraft of giving the contractor a $25,000 mobilization payment? (Show calculation.)

Assumptions:

The markup for this project is 12%.

Retainage is 10 percent throughout project.

Finance charge is 1.5 percent per month.

Payments are billed at the end of the month and are received one month later.

Month Monthly cost 69,00021,800 17,800 40,900 Directcost+ indirect cost