A $60,000 mobilization item is 40% payable at NTP and 60% after field office setup. What amount is payable at NTP?
Correct Answer
A) $24,000
NTP mobilization payment is $60,000 x 40% = $24,000.
Why This Is the Correct Answer
NTP mobilization payment is $60,000 x 40% = $24,000.
Why the Other Options Are Wrong
Option B: $18,000
mobilization prorate, choice b: $18,000 backs into 45,000 when divided by 40%; the accepted setup gives 60,000 on that same base.
Option C: $36,000
mobilization prorate, choice c: $60,000 x 0.6 gives $36,000. That calculation follows multiplies those two listed numbers.
Option D: $60,000
mobilization prorate, choice d: the number $60,000 comes from $60,000 but stops before the calculation reaches $24,000.
Memory Technique
Remember mobilization prorate as "base, adjustment, final unit"; the last unit should read $24,000.
Reference Hint
Open NASCLA Contractors Guide to Business, Law and Project Management, 14th Ed.; use the index entry or section for "mobilization payment" to confirm that NTP mobilization payment is $60,000 x 40% = $24,000.
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