A contractor will face negative cash flow in the construction project as shown below. This is due to the late payment of monthly progress payments by the employer and the fact that the cash guarantee is kept by the employer until the end of the project. The interest on the money that the contractor will borrow to meet this negative money flow is 2% per month. If for the month of March 45 000 p.b. instead of 15 000 p.b. How much less would he have paid in total if he had borrowed interest-bearing? January -85 000 p.b. (currency unit) February -120 000 p.b. March -45 000 p.b. April -90 000 p.b. May -63 000 p.b. June -15 000 p.b. July + 10 000 p.b. August + 408 000 p.b. A) 29 146 B) 34 750 C) 38 486 D) 35 186 E) 33 123
8 - A contractor will face negative cash flow in the construction project as shown below. This is due to the late payment of monthly progress payments by the employer and the fact that the cash guarantee is kept by the employer until the end of the project. The interest on the money that the contractor will borrow to meet this negative money flow is 2% per month. If for the month of March 45 000 p.b. instead of 15 000 p.b. How much less would he have paid in total if he had borrowed interest-bearing?
January -85 000 p.b. (currency unit)
February -120 000 p.b.
March -45 000 p.b.
April -90 000 p.b.
May -63 000 p.b.
June -15 000 p.b.
July + 10 000 p.b.
August + 408 000 p.b.
A) 29 146
B) 34 750
C) 38 486
D) 35 186
E) 33 123
Step by step
Solved in 4 steps with 4 images