Cost of maintaining the site

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Reference no: EM132078505

In a housing project the following sequence of events occurs.

At the start of the project (time zero), land is bought at $1,000,000
Two months later, $100,000 is paid to the architect for preparing the design
In month 4, construction is started and the cost of construction (labor and material) is $150,000per month
Every month, one house is built (a total of 12 houses); the first one is ready for sale in month 6
During every month starting from month 8, one house is sold for a price of $150,000 each
After all of the houses are built and before all are sold, the cost of maintaining the site is $10,000per monthDraw the cash flow diagram.

Reference no: EM132078505

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