5. Given the following cost expenditures (see Table P6.3) for a small bridge job to include direct and indirect charges (but not bank interest): A. Calculate the peak financial requirement. B. Sketch a diagram of the overdraft profile. Assumptions: The markup for this project is 8%. Finance charge is 1% per month. Retainage is 6% throughout project. Payments are billed at the end of the month, and are received one month later. TABLE P6.3 Monthly Costs for Bridge Job Month 1 2 3 Monthly cost∗ 29,000 48,900 16,400 ∗ Direct cost + indirect cost

5. Given the following cost expenditures (see Table P6.3) for a small bridge job to include direct and indirect charges (but not bank interest): A. Calculate the peak financial requirement. B. Sketch a diagram of the overdraft profile. Assumptions: The markup for this project is 8%. Finance charge is 1% per month. Retainage is 6% throughout project. Payments are billed at the end of the month, and are received one month later. TABLE P6.3 Monthly Costs for Bridge Job Month 1 2 3 Monthly cost∗ 29,000 48,900 16,400 ∗ Direct cost + indirect cost

EBK CFIN

6th Edition

ISBN:9781337671743

Author:BESLEY

Publisher:BESLEY

Chapter9: Capital Budgeting Techniques

Section: Chapter Questions

Problem 12PROB

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You are the project manager for kpl project and since you don’t sleep much, you get a lot of roject work done. You are recommending a project that cost GH¢575,000; expected inflows are GH¢25,000 per quarter for the first two years and then GH¢75,000 per quarter thereafter Required: How may quarters beyond three years will be required to cover the cost of GH¢575,000
You are the project manager for kpl project and since you don’t sleep much, you get a lot of roject work done. You are recommending a project that cost GH¢575,000; expected inflows are GH¢25,000 per quarter for the first two years and then GH¢75,000 per quarter thereafter Required: How may quarters beyond three years will be required to cover the cost of GH¢575,000 How many months in all is required until the total cost of GH¢575,000 is covered?
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You are the project manager for kpl project and since you don’t sleep much, you get a lot of roject work done. You are recommending a project that cost GH¢575,000; expected inflows are GH¢25,000 per quarter for the first two years and then GH¢75,000 per quarter thereafter Required: How many months in all is required until the total cost of GH¢575,000 is covered?
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