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Christian Pulisic just signed a contract to play soccer for Chelsea F.C. His contract entitles him to a base salary of $1 million for
Christian Pulisic just signed a contract to play soccer for Chelsea F.C. His contract entitles him to a base salary of $1 million for his first season, plus a bonus of $250,000 if he scores at least 4 goals. Based on past performance, Christian estimates an 80% chance of earning the bonus. What amount should Christian use for the transaction price (first season only) if he uses the expected value approach?
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