• Lambda Construction has the following information for a construction project:
  • Direct materials: $100,000
  • Direct labor: $150,000
  • Equipment costs: $50,000
  • Overhead costs: $30,000

• Requirements:
  1. Calculate Lambda Construction's total project costs.
  2. Determine the project's gross profit.
  3. Calculate the gross profit margin.
  4. Analyze the project's profitability index.
  5. Determine the payback period for the project.