4 For your office work you need a high end photocopy machine which is available to rent for 150

USD per day and the operating cost is 25 USD. The price of this machine is 125,000 USD. You

will need this machine for several months, therefore you start calculating whether you should

purchase it or not. Calculate the number of days after which it would be advisable to buy this

machine.

5 Your organization has signed a cost plus incentive fee contract with a seller. The cost of the

contract is 100,000 USD and the target profit is 10% of the target cost. The sellers share ratio is

25% and has spent 90,000 USD to complete the task.

Calculate the profit and actual price paid to the seller.

6 Your company has signed a fixed price incentive fee contract with a seller with the following

details:

Target Cost = 300,000 USD

Target Incentive Fee = 50,000 USD

Share Ratio = 70/30

Ceiling Price = 400,000 USD

Actual Cost = 320,000 USD

Calculate the actual price paid to the seller.