Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Table Q1 shows the cost of works and the program for the construction of a small building. The gross profit margin is 15 per
Table Q1 shows the cost of works and the program for the construction of a small building. The gross profit margin is 15 per cent of contract cost and retention is 5 percent. Progress payment is on monthly basis and measurement will be made at the end of each month and the contractor receives the payment one (1) month later. The retention money is paid six months after practical completion. To simplify the calculation you may assume that all costs must be met at the instant they are incurred. You may also assume that the monthly value and cost for each activity are equally distributed. Cost of works Activities Start Date Finish Date A (RM) 180,000 1 Jan 2019 31 March 2019 B 360,000 1 Feb 2019 30 April 2019 C 240,000 1 May 2019 15 June 2019 300,000 1 April 2019 30 April 2019 E 150,000 16 April 2019 31 May 2019 F 600,000 1 June 2019 Table Q1 30 September 2019 Based on the above information, answer the following questions. i. ii. iii. Calculate the cumulative payment received at the end of April 2019. Calculate the maximum cash required for this project. At the end of which month the maximum cash is required? You must prepare and submit the followings: i. Bar chart with cashflow. ii. Cashflow table iii. Cashflow graph (with figures)
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started