question 1&3

1. The following table shows a contractor's project budget and profit for a new con. tract: 6 4 5 7 8 9 1 2 3 10 Month Number Value of work each month (x $1000) % Profit charged 8 2 6 3 6 4 6 9 6 9 6 8 5 6 10 4 10 2 10 6 Measurements are made monthly with payment delay of one month and 10% retention. Half the retention is paid on completion and the other half is released six months after completion. Draw the cumulative income and expense curves and de termine the monthly net cash flow. Interest rate is 1% per period. 3. The table below lists the cumulative monthly expenses incurred by a contractor and the corresponding monthly payments received from the owner of a project. Calculate the cost to the contractor of providing the working capital necessary to finance the project if interest rate is 10%. If the owner makes his payments one month later than anticipated in the table, by what percentage will the financial charge increase? End of Month Cumulative Expense ($ x 1000) Cumulative Income ($ x 1000) 0 0 0 1 12 0 2 20 0 3 54 0 4 14 5 130 40 6 180 100 7 220 130 8 240 190 260 210 10 290 300 11 290 320 12 290 340 90 1. The following table shows a contractor's project budget and profit for a new con. tract: 6 4 5 7 8 9 1 2 3 10 Month Number Value of work each month (x $1000) % Profit charged 8 2 6 3 6 4 6 9 6 9 6 8 5 6 10 4 10 2 10 6 Measurements are made monthly with payment delay of one month and 10% retention. Half the retention is paid on completion and the other half is released six months after completion. Draw the cumulative income and expense curves and de termine the monthly net cash flow. Interest rate is 1% per period. 3. The table below lists the cumulative monthly expenses incurred by a contractor and the corresponding monthly payments received from the owner of a project. Calculate the cost to the contractor of providing the working capital necessary to finance the project if interest rate is 10%. If the owner makes his payments one month later than anticipated in the table, by what percentage will the financial charge increase? End of Month Cumulative Expense ($ x 1000) Cumulative Income ($ x 1000) 0 0 0 1 12 0 2 20 0 3 54 0 4 14 5 130 40 6 180 100 7 220 130 8 240 190 260 210 10 290 300 11 290 320 12 290 340 90