As part of the acquisition agreement, Pi Corp. agrees to pay the former shareholders of Rho Corp. $1.5 in cash for every dollar of gross revenues above $20,000,000 reported by Rho at the end of the first year following acquisition. Pi projects the following outcomes for the year:

Gross revenues	Probability
$15,000,000	0.10
$20,000,000	0.35
$25,000,000	0.30
$30,000,000	0.15
$35,000,000	0.10

Required: Using a 15 percent discount rate, what is the appropriate value to be reported as an earnings contingency liability on Pi’s books at the date of acquisition?