Indigo A.G. enters into a contract with a customer to build an apartment building for €1,031,300. The customer hopes to rentapartments at the beginning of the school year and provides a performance bonus of €144,300 to be paid if the building is ready forrental beginning August 1, 2023. The bonus is reduced by €48,100 each week that completion is delayed. Indigo commonly includesthese completion bonuses in its contracts and, based on prior experience, estimates the following completion outcomes:Completed byAugust 1, 2023August 8, 2023August 15, 2023After August 15, 2023Probability70 %204(a) Determine the transaction price for the contract, assuming Indigo is only able to estimate whether or not the building can becompleted by August 1, 2023, or not (Indigo estimates that there is a 70% chance that the building will be completed by August 1,10. Do not leave any fields blank I (a) Determine the transaction price for the contract, assuming Indigo is only able to estimate whether or not the building can becompleted by August 1, 2023, or not (Indigo estimates that there is a 70% chance that the building will be completed by August 1.2023). (If answer is 0. please enter O. Do not leave any fields blank.)Transaction Price€1175600(b) Determine the transaction price for the contract, assuming Indigo has limited information with which to develop a reliable estimateof completion by the August 1, 2023, deadline.Transaction Price €822920

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Answered: Indigo A.G. enters into a contract with…

A First Course in Probability (10th Edition)

10th Edition

ISBN:9780134753119

Author:Sheldon Ross

Publisher:Sheldon Ross

Chapter1: Combinatorial Analysis

Section: Chapter Questions

Problem 1.1P: a. How many different 7-place license plates are possible if the first 2 places are for letters and...

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Please don't provide handwritten solution... Cindy borrows 13,500 for 12 years at an annual effective interest rate of i. She accumulates the amount necessary to repay the loan by a sinking fund. Cindy makes a payment P at the end of each of the 12 years of the loan period; each includes payment on the loan at an annual effective interest rate of i and payment into a sinking fund on which the annual effective interest rate is 4%. If the annual effective rate on the loan had been 2i instead of i, Cindy's total annual payment would have been 1.2 P. Find P
Suppose that you are thinking about buying a car and have narrowed down your choices to two options. The new-car option: The new car costs $32,000 and can be financed with a five-year loan at 7.54%. The used-car option: A three-year old model of the same car costs $15,000 and can be financed with a four-year loan at 6.21%. What is the difference in monthly payments between financing the new car and financing the used car?
Q6: In the year 2020 you have completed your graduation with HRM specialization from HCT College and joined as an executive in the department of HRM in Petroleum Development Oman (PDO) with a salary of OMR 1650 per month. As per the PDO norms you will be retired from your employment in the year 2060. In order to lead a peaceful and secured life after your retirement, it is estimated that you should need a cash balance of OMR 200,000. a) How much money do you need to deposit now, if money compounds monthly at 8% interest rate? b) How much you need to deposit if your requirement is OMR 250,000 and you retire in the year 2065?
Suppose that you decide to buy a car for $57,000, including taxes and license fees. You saved $13,000 for a down payment. The dealer is offering you a choice between two incentives. Incentive A is $3000 off the price of the car, followed by a three-year loan at 7.65%. Incentive B does not have a cash rebate, but provides free financing (no interest) over three years. What is the difference in monthly payments between the two offers? Which incentive is the better deal?(round to the nearest cent)
“A new proposal has sales tax rates dropping from 3% to 1%, a drop of only 2%.” Absolute changeRelative change
During the last few days M Oil Company has requested rate increases several times. As a result of the granted rate increase, the following revenue amounts will be earned: P18.2 million, 14.9 million, P20 million, P19.2 million, P18.7 million, P15.4 million. P10.2 million, P22 million, P17.5 million, P14.6 million, P13.2 million, and P16.3 million. What is the median for the revenue amounts realized? Please show your solution and write readable thanks.
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A surface mount PCB placement/soldering line is to be installed for $1.300,000. It will have a salvage value of $90,000 after 5 years. Determine the depreciation deduction and the resulting unrecovered investment during each year of the asset's life. Click here to access the MACRS-GDS Table Calculator Part a Determine the depreciation deduction and the resulting unrecovered investment during each year of the asset's life using double declining balance depreciation. EOY 0 1 ~ 3 + 2 5 Sum depreciation Depreciation Balance 20
The new-car option: The new car costs $30,000 and can be financed with a three-year loan at 7.59%. The used-car option: A three-year old model of the same car costs $17,000and can be financed with a three-year loan at 7.71%. What is the difference in monthly payments between financing the new car and financing the used car?
Find the maximum payment each situation can afford for a housing. a. Enrique makes $109,992 per year b. Julie makes $4589 a month c. Dean makes $1087 weekly
On April 1st, Bob the Builder entered into a contract of one-month duration to build a barn for Nolan. Bob is guaranteed to receive a base fee of $4,400 for his services in addition to a bonus depending on when the project is completed. Nolan created incentives for Bob to finish the barn as soon as he can without jeopardizing the structural integrity of the barn. Nolan offered to pay an additional 20% of the base fee if the project finished 2 weeks early and 15% if the project finished a week early. The probability of finishing 2 weeks early is 20% and the probability of finishing a week early is 65%. What is the expected transaction price with variable consideration estimated as the expected value? Multiple Choice $5,005 $4,180 $5,862 $4,400
A certificate of deposit (CD) is similar to a savings account, but deposits are generally held to maturity. They usually offer higher rates than savings accounts because they "tie up" money for a period of time and often require a minimum deposit. A 3-year CD at a certain bank has a nominal rate of 2.085%, and an effective annual yield of 2.100%. If $800 is deposited with this bank, how much will be in the account at the end of the 3 years?

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