Question: Consider the six-month project shown below. The contractor's expected monthly direct and expenses are shown in the table below. contract conditions are as follows: -
Consider the six-month project shown below. The contractor's expected monthly direct and expenses are shown in the table below. contract conditions are as follows: - 60% of the contractor's direct expenses in any period are credited by suppliers subcontractors, which will be paid in the following period. - The contractor uses a markup of 15% - Owner retention is 10% 0f each invoice submitted by the contractor and will be paid back to contractor with the last payment. - The contractor will get a mobilization payment of 10% of the bid price and the mobilizat payment will be dcductcd from the first four contractor payments equally. - The average delay between a request for payment and making the payment is one month. - The summation of the interest expected for all periods = $ 13,275. - The bank interest rate is 12% per year. a. Make the necessary calculations in the table below until the end of month 3 only to calc overdraft balance at the end of months 1, 2, and 3. b. Calculate the net profit of the contractor for this project
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