Chapter 12, Problem 2RQE

5. Assume a project where all possible receipts and payments, including the retention, are due one month after the project ends. For this project, the total amount of cash generated one month after the project have been received and all bills have been paid) will be equal to a. Gross profit b. Net profit c. Project contract amount d. General overhead over (when all payments

3.. Negotiations is one of the methods for tendering procedures in selecting the main contractor to execute of the proposed construction project. a. Briefly explain the criteria, advantages and disadvantages of this method. b. Explain the following: i. ii. iv. Advance payment Interim payment Final payment Give ONE (1) example of interim payment by using percentage work done.

A client plans to construct a manufacturing plant that involves multiple engineering disciplines.   Calculate the total engineering fees including taxes based on the following: Mechanical Works, $1,540,000 Electrical Works, $1,780,000 Earth Works, $950,000 Civil Works, $2,125,100 Environmental Works, $1,325,000 Basis B fees = 9% There are no office fees Taxes = 13%

QUESTION 23 Costs that include items that cannot be readily charged to any one project, but represent the cost of operating the construction company are known as overhead: a. Field O b. Home office OC. project O d. All of the above

Attach a complete solution. Draw the cash flow diagram.Calculate the capitalized cost of a project that has an initial cost of P8,000,000 and an additional cost of P250,000 at the end of every 8 years. The annual operating costs will be P150,000 at the end of every year for the first 5 years and P200,000 thereafter. In addition there is expected to be recurring major rework cost of P500,000 every 13 years. Assume i=12%

What is the hourly rate of equipment based on the following data? Purchase price (P) = $460,000 %3D Salvage value (F) = $40,000 Useful life (N) = 10 years Working hours per year = 2000 Hours Annual maintenance costs = 10% of purchase price Annual operating costs = $47,000 %3D Interest rate (i) = 15% Select one: a. $61.34/hr b. $51.34/hr c. $91.34/hr d. $81.34/hr

The following cash flows result from a potential construction contract for Erstwhile Engineering.   1. Receipts of​ $500,000 at the start of the contract and ​$800,000 at the end of the fourth year. 2. Expenditures at the end of the first year of$400,000and at the end of the second year of​ $900,000. 3. A net cash flow of zero at the end of the third year.   Using an appropriate rate of return​ method, for a MARR of 25 percent, should Erstwhile Engineering accept this​ project?   Answer the following question:   Erstwhile Engineering should/should not accept the project because the rate of return is (enter your response here) percent, which is less/greater than the MARR.

a) Draw the cash flow diagram for a project if the contractor expenditures in the beginning of the project is (25000$) and he receives payments (8000$, 10000$, and 13000$) after (2, 4, and 8) months respectively. b) For the question (Q2-a), what is the compound amount of money if the contractor save the initial cost (25000$) in a bank offering interest rate (9%) yeariny

1. A project your firm is considering for implementation has these estimated costs and revenues: an investment cost of $50,000; maintenance costs that start at $5,000 at the end of year (EOY) 1 and increase by $1,000 for each of the next 4 years, and then remain constant for the following 5 years; savings of $20,000 per year (EOY 1-10); and finally a resale value of $35,000 at the EOY 10. If the project has a 10-year life and the firm's MARR is 10% per year, what is the present worth of the project? Is it a sound investment opportunity? 2. A toll bridge across the Mississippi River is being considered as a replacement for the current 1-40 bridge linking Tennessee to Arkansas. Because this bridge, if approved, will become a part of the U.S. Interstate Highway system, the B-C ratio method must be applied in the evaluation. Investment costs of the structure are estimated to be $17,500,000 and $325,000 per year in operating and maintenance costs are anticipated. In addition, the bridge…