Answer:
Transaction price $241,400
Transaction price $245,720
Explanation:
Outcome Probability Contract Revenue Transaction Price
Complete on time 50% $215,000 + $32,000 = $247,000 $123,500
Complete one week late 30% $215,000 + $24,000 = $239,000 $71,700
Complete two weeks late 20% $215,000 + $16,000 = $231,000 $46,200
Transaction price $241,400
2
Outcome Probability Contract Revenue Transaction Price
Complete on time 84% $215,000 + $32,000 = $247,000 $207,480
Complete one week late 16% $215,000 + $24,000 = $239,000 $38,240
Transaction price $245,720