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On April 15. Bob the Builder entered into a contract of one month daration to build a barn for Nolan. Dobis guaranteed to receive a

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On April 15. Bob the Builder entered into a contract of one month daration to build a barn for Nolan. Dobis guaranteed to receive a base fee of $5.500 for his services in addition to a bonus depending on when the project is completed. Nolan created incentives for Bob to finish the barn as soon as he can without eopardizing the structural integrity of the barn. Nolan offered to pay an additional 25% of the base fee if the project finished 2 weeks early and 15% of the project finished a week early. The probability of finishing 2 weeks early is 20 and the probability of finishing a week early is 60% What is the expected transaction price with variable consideration estimated as the expected value 56,270 $5.500 57,174 55.225

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