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Table Q3 shows a cost statement of Construction Company, prepare a cash flow analysis for the contract. Payment is to be made monthly to the
Table Q3 shows a cost statement of Construction Company, prepare a cash flow analysis for the contract. Payment is to be made monthly to the contractor within the period of 30 days, subject to 5 per cent retention. The profit release from the project has been forecast at 20 per cent. The contract is of 12 months' duration and the defects liability period is to be 6 months. Half the retention fund is to be released on completion of the defects period. a) Determine the monthly cash flows and the total cash generated by the project at the end of each month and just before each payment is received from the project's owner. (15 Marks) b) Analyze the maximum finance to be provided by the company during the completion of the project if the owner pays the monthly bills two month after they are received claim (10 Marks)
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