A construction company is negotiating on a construction project with a six-month duration. On the last day of each month the construction company may bill the owner for the work completed during the month. The owner pays the monthly bills one month after they are received. The owner also holds 5% retention. Final payment is expected one month after completion of the project and includes payment of the retention. The construction company pays material suppliers in full when it receives payment from the owner. The construction company pays subcontractors when it receives payment from the owner but withholds 5% retention from the subcontractors payment. The construction company pays for labor weekly. The projected monthly material, labor, and subcontractor costs, as well as the amount the construction company will bill the projects owner each month, are shown in Table 12-9. Determine the monthly cash flows and the total cash generated by the project at the end of each month and just before each payment is received from the projects owner. What is the maximum amount of cash invested by the company during the completion of the project?

Table 12-9 Data for Problem 8 Costs Materials Sub. ($) Bill to Owner Labor ($) Month 1 8,800 8,100 13,100 33,000 2 14,200 11,900 31,400 63,200 3 21,000 19,800 31,700 79,800 4 4 6,800 7,600 28,100 46,800 5 5,100 7,000 17,900 33,000 6 4,100 4,100 9,300 19,200 Total 60,000 58,500 131,500 275,000