Question: How do we get the numbers in the table? Please show the steps to the calculations As a contractor, you are bidding on a construction
How do we get the numbers in the table? Please show the steps to the calculations
As a contractor, you are bidding on a construction project for a commercial building. You estimate the construction period as 4 months and your direct cost to be $500,000 as shown in Table S. You estimate to accrue $5,000 indirect cost for each month of the project. As standard practice, you will send an invoke at the end of each month to the owner's representative and you will get paid after a one month review period. You will add 5% to each invoice for profit. The contract Indicates that there will be a retainage of 10% on every payment and the retained money will be paid to the contractor together with the last payment. If your MARR is 8%, is this a good project? (Assume all costs and payments take place at the end of month and use 2 digits after comma for rounding - Use 0.5% monthly interest rate for bank loan)
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