Draw the cash flow diagram for the given project below and then calculate the project net profit. The following table shows the ac description, dependency, duration, and cost...
Draw the cash flow diagram for the given project below and then calculate the project net profit. The following table shows the activities description, dependency, duration, and cost elements. Assume the followings:
Project overhead 8%.
Tax 3%.
Bond 1.25%.
Profit 6%.
Interest rate 9% per year.
Down payment 10% with a guarantee letter, which costs 0. month paid to the bank at the project start date.
A performance guarantee letter of 10% will be submitted from contractor at the project begin.
Invoices are submitted every month and will be paid a month later.
Retention 10% and will be paid at the last invoice.
Subcontractors: retention 10% will be paid at the last invoice, down payment 20%.
Labor: labor expenses to be paid bi-weekly.
Equipment: equipment expenses will be paid 50% at the begin of the work item and the rest at the end of work item.
Material: material expenses will be paid 50% upon delivery and 50% two weeks later, material invoices will be paid to the contractor 75% upon delivery and the rest during activity construction (Assume material will be delivered just at the activity start date).