Cash Flow

For the project whose cost data are given below, plot the cumulative project expenditures, value of work, and progress payments received versus time. What is the contractor's maximum negative cash flow, and when, does it occur? Progress payments are calculated at the end of each month and received the middle of the following month. Retainage is 10% until project completion. Assume that final project payment, including released retainage, is received the middle of the month following project completion.

End-of-Month Cumulative Values Month Expenditures Value of Work

1 $12,000 $8,000

2 24,000 20,000

3 41,000 38,000

4 60,000 58,000

5 85,000 84,000

6 120,000 120,000

7 175,000 180,000

8 230,000 240,000

9 240,000 250,000

10 245,000 260,000

11 246,000 268,000

12 247,000 275,000