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 15 days after they are received. The owner also holds 10% 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 10% from the subcontractors payment. The construction company pays for labor weekly. The projected monthly material, labor, and subcontractor costs are shown in Table 12-10. 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?

Costs Month Materials ($) Labor ($) Sub. ($) Bill to Owner ($) 1 35,600 125,200 101,200 237,200 2 N 33,700 54,100 69,600 17,200 14,700 25,300 42,400 77,900 17,900 3 93,600 258,000 4 105,700 150,700 5 21,900 60,400 103,800 64,100 6 11,600 12,700 35,600 Total 200,900 198,100 456,100 915,000