David Miller, president of Pharoah Always, agrees to construct a concrete cart path at Coronado Golf Club. Pharoah Always enters into a contract with Coronado to construct the path for $161.000. In addition, an part of the contract, a performance bonus of $34,800 will be paid based on the timing of completion. The performance bonus will be paid fully if completed by the agreed-upon date. The performance bonus decreases by $8.700 per week for every week beyond the agreed-upon completion date. David has been involved in a number of contracts that had performance bonuses as part of the agreement in the past. As a result, he is fairly confident that he will receive a good portion of the performance bonus. David estimates, given the constraints of his schedule related to other jobs, that there is 55% probability that he will complete the project on time, a 30% probability that he will be 1 week late, and a 15% probability that he will be 2 weeks late.

David Miller, president of Pharoah Always, agrees to construct a concrete cart path at Coronado Golf Club. Pharoah Always enters into a contract with Coronado to construct the path for $161,000. In addition, as part of the contract, a performance bonus of $34,800 will be paid based on the timing of completion. The performance bonus will be paid fully if completed by the agreed-upon date. The performance bonus decreases by $8,700 per weck for every week beyond the agreed-upon completion date. David has been involved in a number of contracts that had performance bonuses as part of the agreement in the past. As a result, he is fairly confident that he Will recelve a good portion of the performance bonus. David estimates, given the constraints of his schedule related to other jobs, that there is 55% probability that he will complete the project on time, a 30% probability that he will be 1 week late, and a 15% probability that be will be 2 weeks late. Assume that David Miller has reviewed his workschedule and decided that it makes sense to complete this project on time. Assuming that he now believes that the probability for completing the project on time is 92% and othenwise it will be finished 1 week late. determine the transaction price. Transaction price eTextbook and Media List of Accounts Attempts: 1 of 3 used