Draw the cash flow diagram for the given project below and then calculate the project net profit. The following table shows the activities description, dependency, duration, and cost elements. Assume the followings:

Job Code	Activities Description	Depends on	Duration (weeks)	Labor Costs	Material Costs	Equipment Costs	Sub- contractor Costs
A	Build Pump Foundation	---	6	200,000	350,000	120,000	350,000
B	Build Pump House	A	8	90000	285000	---	156000
C	Install Base Plate	A	4	---	---	234000	450000
D	Install Electrical Motor	B, C	6	---	---	---	150000
E	Install Pump	D	8	74000	178000	75000	---

• Project overhead 8%.
• Tax 3%.
• Bond 1.25%.
• Profit 6%.
• Interest rate 9% per year.
• Down payment 10% with a guarantee letter, which costs 0.25% per month paid to the bank at the project start date.
• A performance guarantee letter of 10% will be submitted from contractor at the project begin.
• Invoices are submitted every month and will be paid a month later.
• Retention 10% and will be paid at the last invoice.
• Subcontractors: retention 10% will be paid at the last invoice, down payment 20%.
• Labor: labor expenses to be paid bi-weekly.
• Equipment: equipment expenses will be paid 50% at the begin of the work item and the rest at the end of work item.
• Material: material expenses will be paid 50% upon delivery and 50% two weeks later, material invoices will be paid to the contractor 75% upon delivery and the rest during activity construction (Assume material will be delivered just at the activity start date).

Answer rating: 100% (QA)

A Build Pump Foundation 6 200000 350000 120000 350000 B Build Pump House A 8 9000... View the full answer