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Construct Co . signed a contract with a private school to build an addition to its main building within two months. The contract stipulated that

Construct Co. signed a contract with a private school to build an addition to its main building within two months. The contract stipulated that Construct co would receive $10,000 after completing the project. In addition, to encourage Construct Co to be more efficient and finish the construction earlier, the school offered a 10 percent bonus if the addition was constructed in 50 days, a 20 percent bonus if the construction was completed in 40 days, and a 25 percent bonus if a month was enough to finalize the construction. The probability of finishing the construction in 50 days is 20% and the probability of finishing in 40 days is 50%. However, Construct Co believes that there is no chance they can finish the construction in one month. Determine the expected transaction price after taking into consideration the variable consideration estimated using the expected value approach?
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