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I am struggling to understand Example 1 covering borrowing costs in chapter 6. Seems I am lacking pure maths skills which drives me mad. Not quite sure why the example was not covered in the lectures either…What I don’t understand is the figures from the answer for “Invested” – 50,20,90,30,90 and “Spent” – 50,30,50,60,20,90. The first invested is fine, but we don’t have any 50 spent in the same period? Then in Feb there is no 20 invested? …or 50 spent in April…or 30 invested in May…or 90 invested in Aug?
Either I am lacking very basic maths or there is something wrong with the question.
Any advice will be much appreciated…Please, help…out of first disbursement of 100 Mio, 50 Mio was invested. that leaves the remaining 50 Mio which is spent on the project. It is similar in the later periods where any fund taken out of the bank is either spent on the project or invested elsewhere. And at times funds invested elsewhere is taken back to invest in the project. At the end of it all the invested fund is routed back and spent in the project.
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