External failure is a cost that relates to all errors not detected and therefore not corrected upon delivery to the customer.
Answer: Option (b) is correct.
Explanation:
Given that,
Price of island = $24 worth of goods
Goods include beads, trinkets, cloth, kettles, and axe heads.
Annual interest rate(r) = 4%
Number of periods(n) = 391
Future value will be calculated from the following formula:



= 24 × 4,571,257.29
= $109,710,174.93
<span>The owner must be an in house CM or construction engineer to administer the contracts. CM is established as an independent contractor. The CM is responsible to the owner to complete the project by the established substantial completion date and within the agreed budget. The CM must compensate the owner when the construction does not satisfy the established standards of performance for a project.</span>