Business, 25.11.2021 08:20 jfarrar02

Nair Corp. enters into a contract to build an apartment building for $1,000,000. The customer hopes to rent apartments at the beginning of the school year and provides a performance bonus of $150,000 to be paid if the building is ready for rental beginning August 1, 2021. The bonus is re-duced by $50,000 each week that completion is delayed. Nair commonly includes these completion bonuses in its contracts and based on prior experience, estimates there is 70% probability of completion by August 1, 20% probability of completion by August 8, 5% probability of completion by August 15, and 5% probability of completion after August 15. Using the Expected Value method, the contract price should be:

Answers: 3

Show answers

Another question on Business

Business, 21.06.2019 14:50

Calvin works at a facility which processes apples. it costs the facility $0.68 to make either a jar of applesauce or a bottle of apple juice. due to the nature of the process and contractual agreements, calvin's facility must make and sell three jars of applesauce for every two bottles of apple juice. a jar of applesauce sells for $2.20, and a bottle of apple juice sells for $3.15. if the facility has annual overhead costs of $368,500, not including production costs, how many bottles of apple juice will the facility have sold when it breaks even every year? round to the nearest whole bottle, if necessary.

Answers: 3

Answer

Business, 22.06.2019 01:00

Azster inc. recorded sales revenue for the year that ended december 31, 2014 as $67,000. interest revenue of $5,300 and expenses of $14,000 were also recorded for the same period. what is aster’s net profit or loss?

Answers: 3

Answer

Business, 22.06.2019 10:30

Which analyst position analyzes information using mathematical models to business managers make decisions? -budget analyst -management analyst -credit analyst -operations research analyst

Answers: 1

Answer

Business, 22.06.2019 17:00

Dan wants to start a supermarket in his hometown, and wants to get into the business only after finding out about the market and how successful his business might be. the best way for dan to gain knowledge is to:

Answers: 2

Answer

You know the right answer?

Nair Corp. enters into a contract to build an apartment building for $1,000,000. The customer hopes...

Questions