**See Instructions For Solving @ Bottom** The contractor's construction expenses and owner's payments for a construction project are expressed in then-current inflated dollars in the table below. The monthly interest rate required by the bank is 1.3 percent regardless of inflation. Suppose that the work is stopped for two months at the end of month 5 due to a labor strike while the monthly inflation rate is 0.7 percent. Under the terms of the contract between the owner and the contractor, suppose that the owner's payments will be delayed but not adjusted for inflation. Find the cumulative net cash flow with interest due to overdrafting for the following conditions: (a) if there were no labor strike and (b) when there is a strike for two months at the end of month 5. **Instructions** 1)Calculate Net Cash Flow At 2)Calculate: *Et & Et i/2 3)Calculate The Cumulative Cash Flow Before Payment = Ft with & with out interest 4)Calculate Nt = Nt-1 + It-Et + Pt 5)Calculate: It Nt i - Eti/2 6)Calculate Cumulative Net Cash Flow Nt with & with out interest *Annual Interest - It *Cumulative Cash Flow Before Payment Ft with interest *Cumulative Net Cash Flow with interest NT with interest *All Calculations For All Equations for 14 Periods Must Be Shown I Need to Verify my calculations The contractor's construction expenses and owner's payments for a construction project are expressed in then-current inflated dollars in the table below. The monthly interest rate required by the bank is 1.3 percent regardless of inflation. Suppose that the work is stopped for two months at the end of month 5 due to a abor strike while the monthly inflation rate is 0.7 percent. Under the terms of the contract between the owner and the contractor, suppose that the owner's payments will be delayed but not adjusted for inflation. Find the cumulative net cash flow with interest due to overdrafting for the following conditions: (a) if there were no labor strike and (b) when there is a strike for two months at the end of month 5. End of month, t 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 Total Contractor's expenses Et -$200,000 -251,250 -404,000 -527,852 -642,726 -799,734 -772,800 -683,430 -447,501 -397,442 -348,965 -270,438 -437,420 0 0 $6,183,558 Owner's Payment Pt 0 $225,000 360,000 468,000 567,000 702,000 675,000 594,000 387,000 342,000 298 230,400 370,800 1,080,000 600,000 $6,900,000