You are the project monitor for a project in Toronto. You have been provided with the following cash flow budget for the project. What would be the equity drawdown amount for Month 2? Project Financing Total Project Costs $3,515,000 Borrower's Equity $850,000 Project Cash Flow Budget Project Description Month 1 Month 2 Month 3 Month 4 Month 5 Budget Land Cost $500,000 $500,000 $0 $0 $0 Hard Costs with Contingency $2,500,000 $250,000 $250,000 $750,000 $750,000 Soft Costs with Contingency $500,000 $100,000 $100,000 $100,000 $100,000 $0 $500,000 $100,000 Interest Costs $15,000 $0 $0 Total Project Costs $3,515,000 $850,000 $350,000 $1,000 $851,000 $5,000 $9,000 $855,000 $609,000 $200,000 $100,000 $0 $500,000
You are the project monitor for a project in Toronto. You have been provided with the following cash flow budget for the project. What would be the equity drawdown amount for Month 2? Project Financing Total Project Costs $3,515,000 Borrower's Equity $850,000 Project Cash Flow Budget Project Description Month 1 Month 2 Month 3 Month 4 Month 5 Budget Land Cost $500,000 $500,000 $0 $0 $0 Hard Costs with Contingency $2,500,000 $250,000 $250,000 $750,000 $750,000 Soft Costs with Contingency $500,000 $100,000 $100,000 $100,000 $100,000 $0 $500,000 $100,000 Interest Costs $15,000 $0 $0 Total Project Costs $3,515,000 $850,000 $350,000 $1,000 $851,000 $5,000 $9,000 $855,000 $609,000 $200,000 $100,000 $0 $500,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:You are the project monitor for a project in Toronto. You have been provided with the
following cash flow budget for the project. What would be the equity drawdown
amount for Month 2?
Project Financing
Total Project Costs
$3,515,000
Borrower's Equity
$850,000
Project Cash Flow Budget
Project
Description
Month 1
Month 2
Month 3
Month 4
Month 5
Budget
Land Cost
$500,000
$500,000
$0
$0
$0
Hard Costs with Contingency
$2,500,000
$250,000
$250,000
$750,000
$750,000
Soft Costs with Contingency
$500,000 $100,000
$100,000
$100,000
$100,000
$0
$500,000
$100,000
Interest Costs
$15,000
$0
$0
Total Project Costs
$3,515,000 $850,000 $350,000
$1,000
$851,000
$5,000
$9,000
$855,000 $609,000
$200,000
$100,000
$0
$500,000
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