Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

how do you get the numbers under Overdraft at beggining? show you r calculations. The numbers shown are the correct answers. 3. As a contractor

how do you get the numbers under Overdraft at beggining? show you r calculations. The numbers shown are the correct answers. image text in transcribed

3. As a contractor you are bidding on a construction project for acommercialbuilding, You estimate the construction period as4monthE and your direct cost to be s600,00oasshowni Fevre In addition to your direct cost, you estimateto accrue $4,000 indirectaostforeach month ofthe project. As standard practice you will send an invoice at the end ofeach month to the owner's representative and you will get paid after a month review period. You will add 10% each invoice for profit. The contract indicates that there will be a retainage od10% every payment and the retained moneywill be paid to the contractor together withthe last payment. (Assume allcosts and payments take place at the end of month and use 2 dets after commafor roundins-UseC%d annual Interest rate for bank loan. (30 points) b. Draw the cash flow diagram and show ifthis sagood project foraMARRof8% annual c the owner delays the payment forthe invoice of the 3 month by exactly 1 month (after the review period, how does your cash fiow diagram change? Is this still a good project? Cumulative Direct Cost Curve Figure 3 cumulative Cost Distribution Curve Game oso Invoice Pre. invoice RO-to- nege t ble Maybe sed for calculations oineet Tindrect TRetained Payment TBalance Overdraft Pages of 6 Intaest- Intrest paind: 4 ronths 6263.07

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Listed Volatility And Variance Derivatives

Authors: Yves Hilpisch

1st Edition

1119167914, 978-1119167914

More Books

Students also viewed these Finance questions

Question

Solve Prob. 27.4 with the finite-difference approach using x = 2.

Answered: 1 week ago