PART I - Project Cash Flow Analysis

Analyze the cash inflows and outflows of the project shown below following the Example Project Cash Flow Analysis posted in Module 1 lecture resources. What is the contractor's expected profit in this project?

Work Type	Month 1	Month 2	Month 3	Month 4	Month 5
Move in	1,750
Survey		800
Trench		2,300	5,250
Lay Pipe (Sub)				2,250
Concrete (Sub)				700	700
Backfill					500
Move out					350
Fix Valves				700
Put Valves				700
Test					1,000

• The dollar values shown in the table above are in thousands
• The contractor is subcontracting the pipe laying and concreting works only.
• The owner and engineer need one month to review, approve, and authorize progress payment upon receipt of the invoice from the contractor.
• The contractor will pay the subcontractors the same month he collects his payment from the owner.
• The contractor's total indirect costs are $1,800,000 and the markup is 3%.
• The retainage percent is 10%.
• Use an interest rate of 1.5%.