You have been asked to Price out a project for an outside customer. The Project will Run for 5 months. Direct labor is $120,000 for each month and the overhead rate it fixed at 100 percent of the direct labor cost per month. Termination Liability on the direct labor and overhead rate is 80 percent of the following month's expenses. Material expenses are as follows:

Material A: Cost is $90,000 payable net 30 days. Material is required in Month 2. There is no termination liability for Material A.

Material B: Cost is $200,000 payable net 30 days. Material B is required in Month 3. There is a termination liability for Material B of 30 days 10%, 60 days 100% .

There is a site cleanup of the cost of $75,000 that is required for month 6. This can be deemed as overhead.

You need to post a $250,000 bond for the project. This bond is due in month 1. The bond amount is returned to you in month 6. You do not receive interest from the money posted at the village. You do borrow the bond amount at 12% at the beginning of month 1.

Calculate the NPV of the project assuming a 12% annual interest rate.

Complete the Table Below

\begin{tabular}{|l|l|l|l|l|l|l|l|} \hline & Month 1 & Month 2 & Month 3 & Month 4 & Month 5 & Month 6 & M ETC \\ \hline Direct Labor & & & & & & & \\ \hline OyerHead & & & & & & & \\ \hline Material & & & & & & & \\ \hline Monthly Cash Flow & & & & & & & \\ \hline Cumulative Cash Flow & & & & & & & \\ \hline Monthly Termination Liability: Labor & & & & & & & \\ \hline Cumulative termination Liability: Labor & & & & & & \\ \hline \end{tabular}