Construction Management
5th Edition
ISBN: 9781119256809
Author: Daniel W. Halpin, Bolivar A. Senior, Gunnar Lucko
Publisher: WILEY
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Question
Chapter 12, Problem 3RQE
To determine
Calculate the rate of return (ROR) of the contractor using the given data.
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The activities involved in the construction of a small building are given below. The price of the work contained in each activity is listed in the table. The contractor undertaking this project would like you to prepare graphs of cumulative expense and income to date against time for activities starting as early as possible. The mark-up is 10% of tender value and retention is 5%. Measurement is made monthly with a payment delay of one month. The retention is paid at the end of the contract. To simplify the calculations, you may assume that all costs must be met by the end of the month in which they are incurred. What is the maximum amount of cash the contractor needs to execute this contract and when does he require this amount?
No.
Activity
Duration (months)
Predecessors
Overlap
Value (LE)
10
20
30
40
50
60
Excavation
Concrete bases
Erect frames
Concrete floor slab
Fix cladding
Install plant
2
3
1.5
1
1.5
1
-
10
20
20
30
40, 50
-
1
1
1
1
-
9000
12000…
An industrial plant bought a generator set for 90,000. Other expenses including installation amounted to 10,000. The generator set is to have a life of 17 years with a salvage value equivalent to 5.5% of the initial cost.Determine the depreciation charge during the 13th year and the book value at the end of 13 years by the:a. Straight Line Methodb. declining balance methodC. sinking fund method at 12% and d. Sum of Years Digit method
A machine has an initial cost of P50,000.00 and a salvage value of P10,000.00 after 10 years. What isthe book value after five years using straight-line depreciation? with cash flow
Chapter 12 Solutions
Construction Management
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