Question: Question 2 (5 points) XYZ Construction Inc. is the general contractor for a fast-food restaurant project. The construction cost is $320,000 and the contract price


Question 2 (5 points) XYZ Construction Inc. is the general contractor for a fast-food restaurant project. The construction cost is $320,000 and the contract price is $384,000. Please develop the cash flow diagram for XYZ based on the cash flow information summarized in the below table. Direct Cost Overhead M1 M2 M3 M4 M5 M6 M7 $25,000 $55,000 $80,000 $60,000 $30,000 $40,000 $0 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $0 $0 $36,000 $72,000 $100,000 $78,000 $44,000 $54,000 Income Cash Flow Diagram For example, John borrowed $10,000 from a bank, h pay back the loan in 4 payments (10% annual interes at the end of years 1, 2, 3, and 4. $10,000 The time units are called periods, and can be years, months, quarters, or any other consistent time unit. 0 1 2 3 4 Unless oth are assum the end of $1,000 $1,000 $1,000 Vertical arrows represent cash inflow and outflow (typically the arrows are drawn based on the amount of $$ they represent) pointing down for costs and up for revenues or benefits $11,000
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