Calculating a Project Profitability
2026-02-05 19:00 - 20:00 (America/Los_Angeles) | https://www.learndesk.us/class/4523694275690496/lesson/1efa4b4b5a2b13344a7478db49142c39?ref=outlook-calendar
Right now we are in an environment about cash management of the delivery process and how to figure out if you should do the project. It has a lot to do with money management. Do you have the liquidity at 1% gratuity of being liquid in a bank? Vs the cost % cost to pay for the project meaning you might be at 13% because you’re financing everything so you have a net negative cost of 12% on the dollar of the contract value. Can you absorb this? The differentiation between positive and negative interest rates of the cash flow system currently when you’re bidding the project. What is your resistance level? Do you have enough liquidity in the bank? If you are doing a 1M project and your cost dollar per dollar finance costs is 11% and your liquidity account has 1.875% how much money do you need in your liquidity account to cover the cost of financing the project? Do you have enough working capital in your account at 1.83 percent to cover the cost of financing a 1M project at an 11.2 %...
