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Problem 1: Conduct cash flow analysis for the construction project shown in the table below: Project info: The indirect cost per month of the project

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Problem 1: Conduct cash flow analysis for the construction project shown in the table below: Project info: The indirect cost per month of the project is $ 3000 for the first 50% of the project total duration and $4500 per month for the remaining duration. The retainage is 10%. The markup is 20% of the total cost. Progress payments will be billed at the end of the month, and the owner will transfer the billed amount minus any retainage to the contractor's account 30 days later (1 month later). Investigate the following: If the received payment is less than the expected contractor's revenue, how much should the contractor have as a line of credit to maintain the continuity in the construction of the project? Assume 2% of interest is applied. How much reduction in the profit expected due to the interest paid to the borrowing agency? Activity Preceded by Direct cost A B C Normal duration (month) 3 6 6 A A A 6000 24000 6000 0 4000 1600 8 2 B.C E F D 4 Problem 1: Conduct cash flow analysis for the construction project shown in the table below: Project info: The indirect cost per month of the project is $ 3000 for the first 50% of the project total duration and $4500 per month for the remaining duration. The retainage is 10%. The markup is 20% of the total cost. Progress payments will be billed at the end of the month, and the owner will transfer the billed amount minus any retainage to the contractor's account 30 days later (1 month later). Investigate the following: If the received payment is less than the expected contractor's revenue, how much should the contractor have as a line of credit to maintain the continuity in the construction of the project? Assume 2% of interest is applied. How much reduction in the profit expected due to the interest paid to the borrowing agency? Activity Preceded by Direct cost A B C Normal duration (month) 3 6 6 A A A 6000 24000 6000 0 4000 1600 8 2 B.C E F D 4

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