2. 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 Monthly cost 48,900 Direct cost+indirect cost 29,000 16,400
2. 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 Monthly cost 48,900 Direct cost+indirect cost 29,000 16,400
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Transcribed Image Text:2. 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
Monthly cost
"Direct cost-indirect cost
29,000
48,900
16,400
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