@
cash out ( s-curve ) cash in
[ direct cost + indirect cost } [ direct cost + indirect cost +
profit }
- Direct cost :
" itis a cost assosciated to an activity "
+ fie =
pod! Wher 5 SI OLS Gets 4) ab
- Indirect cost :
"itis a general cost not assosciated to a certain activity "
it includes : site overhead - taxes - insurance - risks.
EXAMPLE (7)
f Duration Estimated |Reg. No. of crews per week
Activity | (yeeks) [Predecessor] direct cost cae Sreeraaereeaeaeeey
| per activity] _ Normal Minimum
A 2 4 10000 4 4
B 3 A 12000 6 3
c 6 A 12000 18 18
D 5 A 15000 15 10
E I B&C 5000 3) 3
F 6 D&E 18000 6 6
72000 -— Total direct cost
- It is required to :-
Draw the cash flow diagram ( Cash In and Cash out ), if the indirect
cost estimated as $1000 per week, and the profit margin is assumed
to be 10%, and the periodic payments are recieved one month after
billing.Activities
$5000, -—Direct cost per week — —Ditect cost per activity _
A Duration
a $4000
a ! $2000
a $3000 j
i 0)
Z ool
eer $3000 |
F | te {
pe Time
123 4 5 6 7 8 9 10 it i2 13 14 15 |
Cost ;
00 |]
|
80000
70000
60000
50000
40000
30000
20000 va
10000, a
72 s 5= :
99000 000 + $1000 x15 [87000 a)
cash in
= —+—+ — — Time
123 4 5 6 7 8 9 10 11 12 13. 14 15
One Month = 4 WeeksDuration Estimated
| a (weeks ) [Predecessor beara
| A 2 - 4000
| B 3 : 3000
a 6 A | 6000
D 4 B 5000
E 1 cap | 2000
F 6 | £ | 1500
G a E 1000
- Job overhead cost : ( 10% )
i - Tax.: (5%)
- Bond : (1% )
| - Profit : (15% )
- Payments will be recieved two weeks after billing.
It is required to :
1) Draw the bar chart.
2) Draw the cash flow diagram ( Cash In and Cash out).Use wh
~ Indirect cost includes : Job overhead cost, taxes, and Bond.
+. Total Indirect cost = (10% + 5% + 1%) Total direct cost
Total Indirect cost = 16% Total direct cost
Total direct cost
=
Activity (aes Predecessor] je direct cast
per Week activit
A 2 z 4000 000
B 4 7 3000 | 9000
c 6 A | 6000 36000
D 4 B 5000 20000 |
E 1 cep | 2000 2000
F ecm 1500 9000
| #% 2 E 1000 2000
Total direct cost ~4 86000
-. Total Indirect cost = 16% * 86000 = 13760
. Indirect cost per week =
Total indirect cost
Project Duration
13760
Indirect cost per week = 15
= 917.3310 11
Cost
100000
90000
80000
70000,
60000 }
50000
40000
30000
20000
10000
mas
: |
ot
sige
meee eae
Ww
12 13 14 15
12 13 14 15
+ Time
TimeEXAMPLE (9) . |
Activity | PCH [Predecessor eee
A 2 : 400
B lo A | 3000 | |
c 7 | a | 2800 |
D 1s B | 6000
7 5 B | 3000
la 6 ic 3000
Go 3 D&E 2400 |
uw | 4 F&G 4000 |
7 [ 24600 +—Total direct cost
~- Given :- i
- Job overhead cost : ( 15% )
~ Tax.: (3% )
- Bond : (1%) Hl
- Risks : (5% )
- Profit : ( 20% )
- Mobilization cost = 1500 L.E
- 10% retention will be kept by the owner.
- Payments will be recieved one week after billing.
- It is required to :-
1) Draw the bar chart.
2) Draw the cash flow diagram ( Cash In and Cash out ) .* Indirect cost includes : Job overhead cost, taxes, Bond and Risks. .
-- Total Indirect cost = (15% + 3% + 1% + 5% ) Total direct cost
Total Indirect cost = 24% Total direct cost
Total Indirect cost = (24% ) ( 24600 ) = 5904 L.E
* Mobilization cost = 1500 L.E
It will be added to cash out from the beginning of the project.
Cost
cash out, ~~
ec i ITS
* Cash out = cummulative total cost slid! asda le
* Cash in = Cash out (1 + profit )= Cash out (1 + 20% )
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10% will be kept by the owner.
Js] eotiy pabine JS AS Go [ Whll pay
Jeti alba JS Lad Ge Ae WL pba Gl
* Cash in = 1.2 * Cash out * 0.9
= 1.2 * Cash out * 0.9 = 1.08 * Cash out300,
| 1000
—_.
; Time
1 | \ L
10 11 12 13 14 £5 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34
Bar Chart
Cash flowTF=3 z : ct
2 [2014
S217
FR=1
TF=1 TE=1
[102 2 Bolt
(1273 3215 TR=4
FF=0 FF=1 TE=2 TR=2 Big 4
TE=
daats [Ss is0l7 7 [s0L1i TTT
| T1219 TAT TE=0
(e139 FF=0 FF =2
FF=0 TE=0. TE
+15 [60]7 I(T 01TH}
+ 4 1
1 to 7
Be wat
FE=0 FF=0
TR=4 TR=4
13 [7017 7 foo 13)
ao Tern tee | | {tr=4
0 [i6|10 aaa mao | | 20
7 OT7| 171 [8
EB=0 FF=0
eee Precedence network diagram