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.
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.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
Related questions
Question
![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.
REVIEW QUESTIONS AND EXERCISES
157
TABLE P6.2 Project Bar Chart
Month
Activity
1
3.
4
1. Survey
$2,000
2. Mobilization
$1,200
3. Trench
$3,000
$6,000
4. Lay pipe
$3,000
5. Concrete
$500 $500
6. Backfill
$500
7. Move out
$500
8. Prepare valves
$1,000
9. Install valves
S1,000
10. Test
$1,500
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](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F19cfda88-0dc8-4a43-8f07-7adc4696d395%2F24a14a88-0c0d-44a0-8f26-750a43eb937a%2F22fot_processed.jpeg&w=3840&q=75)
Transcribed Image Text: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.
REVIEW QUESTIONS AND EXERCISES
157
TABLE P6.2 Project Bar Chart
Month
Activity
1
3.
4
1. Survey
$2,000
2. Mobilization
$1,200
3. Trench
$3,000
$6,000
4. Lay pipe
$3,000
5. Concrete
$500 $500
6. Backfill
$500
7. Move out
$500
8. Prepare valves
$1,000
9. Install valves
S1,000
10. Test
$1,500
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
Expert Solution
![](/static/compass_v2/shared-icons/check-mark.png)
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 3 steps with 2 images
![Blurred answer](/static/compass_v2/solution-images/blurred-answer.jpg)
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.Recommended textbooks for you
![ENGR.ECONOMIC ANALYSIS](https://compass-isbn-assets.s3.amazonaws.com/isbn_cover_images/9780190931919/9780190931919_smallCoverImage.gif)
![Principles of Economics (12th Edition)](https://www.bartleby.com/isbn_cover_images/9780134078779/9780134078779_smallCoverImage.gif)
Principles of Economics (12th Edition)
Economics
ISBN:
9780134078779
Author:
Karl E. Case, Ray C. Fair, Sharon E. Oster
Publisher:
PEARSON
![Engineering Economy (17th Edition)](https://www.bartleby.com/isbn_cover_images/9780134870069/9780134870069_smallCoverImage.gif)
Engineering Economy (17th Edition)
Economics
ISBN:
9780134870069
Author:
William G. Sullivan, Elin M. Wicks, C. Patrick Koelling
Publisher:
PEARSON
![ENGR.ECONOMIC ANALYSIS](https://compass-isbn-assets.s3.amazonaws.com/isbn_cover_images/9780190931919/9780190931919_smallCoverImage.gif)
![Principles of Economics (12th Edition)](https://www.bartleby.com/isbn_cover_images/9780134078779/9780134078779_smallCoverImage.gif)
Principles of Economics (12th Edition)
Economics
ISBN:
9780134078779
Author:
Karl E. Case, Ray C. Fair, Sharon E. Oster
Publisher:
PEARSON
![Engineering Economy (17th Edition)](https://www.bartleby.com/isbn_cover_images/9780134870069/9780134870069_smallCoverImage.gif)
Engineering Economy (17th Edition)
Economics
ISBN:
9780134870069
Author:
William G. Sullivan, Elin M. Wicks, C. Patrick Koelling
Publisher:
PEARSON
![Principles of Economics (MindTap Course List)](https://www.bartleby.com/isbn_cover_images/9781305585126/9781305585126_smallCoverImage.gif)
Principles of Economics (MindTap Course List)
Economics
ISBN:
9781305585126
Author:
N. Gregory Mankiw
Publisher:
Cengage Learning
![Managerial Economics: A Problem Solving Approach](https://www.bartleby.com/isbn_cover_images/9781337106665/9781337106665_smallCoverImage.gif)
Managerial Economics: A Problem Solving Approach
Economics
ISBN:
9781337106665
Author:
Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Publisher:
Cengage Learning
![Managerial Economics & Business Strategy (Mcgraw-…](https://www.bartleby.com/isbn_cover_images/9781259290619/9781259290619_smallCoverImage.gif)
Managerial Economics & Business Strategy (Mcgraw-…
Economics
ISBN:
9781259290619
Author:
Michael Baye, Jeff Prince
Publisher:
McGraw-Hill Education