QUESTION 2 Your company is participating in a tender for a construction job. You are asked to study the tender document and then to prepare the forecast cash flow for the project. The project is expected to be completed in 4 month time. The terms and condition of the contract is as follows:- - The owner pays the bill one month after receiving it from the company - A 10% retention fund will be deducted from each payment. - The retention fund will be paid one month after the completion of the project. The cost and billing schedule is as shown in the following Table 1:- Table 1: Cost and Billing Schedule Month Material (RM) Labour (RM) Sub-Con (RM) Bill to Owner (RM) 70,000 60,000 80,000 230,000 110,000 90,000 250,000 500,400 3 140,000 160,000 190,000 540,000 40,000 30,000 200,000 300,000 2 4 The company pays its sub-contractor after receiving payment from the owner minus 5% retention of the sub-contractor's payment. The retention will be paid one month after the project is completed. Full payment for the labour is made every week. The supplier is giving one month credit term for the material supplied to the company. (10 marks) b) Forecast the maximum cash invested by the company before receiving the payment from the company