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    Sheet 3 - Overdraft Only

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    A.A Last
    The document contains practice questions on cash flow analysis for construction projects. It provides tables to complete regarding overdraft requirements and asks to sketch profiles for cash flow, net

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    Sheet 3 - Overdraft Only

    Uploaded by

    A.A Last
    24 views3 pages
    The document contains practice questions on cash flow analysis for construction projects. It provides tables to complete regarding overdraft requirements and asks to sketch profiles for cash flow, net

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    Sheet 3 - Overdraft only

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    The document contains practice questions on cash flow analysis for construction projects. It provides tables to complete regarding overdraft requirements and asks to sketch profiles for cash flow, net

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    24 views3 pages

    Sheet 3 - Overdraft Only

    Uploaded by

    A.A Last
    The document contains practice questions on cash flow analysis for construction projects. It provides tables to complete regarding overdraft requirements and asks to sketch profiles for cash flow, net

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    You are on page 1of 3

    COLLEGE OF ENGINEERING & TECHNOLOGY

    Department :Construction and Building Engineering


    Course : Financial Management Course No: CB 518
    Lecturer : Dr. Kareem Adel
    T.Assistant : Eng. Rowaid Ibrahim "Spring 2023"

    SHEET (3)

    Cash flow with Over-Draft


    QUESTION (1):

    Given the following cost expenditure for a small construction project to include the direct
    cost only and assume the indirect cost is about 15% of the direct cost distributed

    Month 1 2 3 4
    Cost 135,000 155,000 140,000 170,000

    • Tender Price 759000 EGP


    • Retainge = 12 %
    • Periodic payments are billed at the end of the month and are received one month
    later.
    Required:
    a) Sketch the overdraft profile at monthly interest of 1 %

    QUESTION (2):

    1) Given the following cost expenditure for a small construction project to include direct and indirect cost.

    Month 1 2 3 4 5
    Cost L.E. 150000 160000 180000 60000 50000

    Tender price is 750,000


    A certain percentage of retainage will be held by the owner from each monthly payment. Such
    retaiange that has a total value of L.E. 75,000 will be paid with the last payment.
    Periodic payments are billed at the end of the month and are received one month later.
    Required:
    - Sketch the cash-flow profile.
    - Sketch the net cash-flow.
    - Sketch the overdraft profile at monthly interest, 1% .
    QUESTION (3):

    The table below represents a contractor’s overdraft requirements for a small construction
    project, complete the table knowing that:

    • Retainage is 5 %
    • Mark-Up is 10 %
    • Interest is 1 %
    • Periodic payments are billed at the end of the month and are received one month
    later.
    • The accumulated retainage will be paid with the last payment
    • Project duration is 4 months

    MONTH 1 2 3 4 5 6
    Expenses ------- ------- ------- ------- - -

    Mark-Up 10 % ------- ------- ------- ------- ------- -------

    Total Billed ------- ------- ------- ------- ------- -------

    Retainage 5 % ------- ------- ------- ------- ------- -------

    Payment (- - - - - - ) (- - - - - - ) (- - - - - - ) (- - - - - - )

    Overdraft ------- ------- ------- ------- ------- -------

    Interest 1 % ------- ------- ------- ------- ------- -------

    Total 30,300 81,103 120,950 119,887 47,204 -

    Required:
    a) Sketch the cash flow profile
    b) Sketch the overdraft profile
    QUESTION (4):

    The table below represents a contractor’s overdraft requirements for a small construction
    project, complete the table knowing that:
    • Tender Price is 345,000 and Mark-Up is 15 %
    • Retainage is 10 %
    • Project duration is 5 months
    • Periodic payments are billed at the end of the month and are received one month
    later.
    • The accumulated retainage will be paid with the last payment

    MONTH 1 2 3 4 5 6
    Expenses ------- ------- ------- ------- ------- -------

    Mark-Up 15 % ------- ------- ------- ------- ------- -------

    Total Billed ------- ------- ------- ------- ------- -------

    Retainage 10 % - - - - - - - ------- ------- ------- ------- -------

    Payment (- - - - - - ) (62,100 ) (- - - - - - ) (82,800 ) (106,950 )

    Overdraft ------- ------- ------- ------- ------- -------

    Interest 1 % ------- ------- ------- ------- ------- -------

    Total 40,400 ------- 111,104 - - - - - - - - - - - - - - - - - - - - -

    Required:
    a) Sketch the expenses and income profile
    b) Sketch the net cash flow profile
    c) Sketch the overdraft profile

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