QUESTION $1(15$ MARKS $-27$ MINUTES$)$ NORMAL $2018$

The Wilco Corporation is a large construction company in central Namibia and they have several projects running for the current financial period, one of its main projects is the construction of an administration building for a newly establish local university in the outskirts of Windhoek..

The project is expected to take three years and the revenue expected from it is $N$$$120000000$ with retention money of $5\%.$ The expected costs to complete the project is $$$5000000$ and the client is expected to make a progress payment of $15\%$ of the contract price once the project is $25\%$ complete. Other payments are scheduled at $50\%$ and $75\%$ completion of the project.

Information related to that project for the first year is as follows:

$\backslash$table$[[,$N$$],[$Material costs incurred,$22500000],[$Labour$,8250000],[$Firm plant and equipment transferred to site,$3200000],[$Equipment hired,$650000],[$Supervisor salaries,$425000],[$Head office costs,$355000]]$

There was material worth $N$$$325000$ left on site at the end of the period. Plant and equipment is depreciated at $20\%$ on cost per annum and only the depreciated portion should be included on the contract as that is the cost associated with the specific contract. The value of work certified is N$ $35000000$

$\backslash$table$[[$REQUIRED:$,$MARKS$],[1\mathrm{.}1,\backslash$table$[[$Calculate the level of completion for the project; will the contractor$],[$receive a progress payment? If so$,$ how much will it be$?]],12\mathrm{.}5$