1. On January 1, 2020, Emily Inc. enters into a contract with Ross Co. to build a piece of high-tech machinery for $1,500,000. Because this machinery is crucial to Ross Co.s future financial success, Ross is offering Emily a bonus of $225,000 if the machine is installed and ready for operations by August 1, 2020. The bonus is reduced by $75,000 each week after that. Emily has built these machines many times and thinks there is a 70% probability that the machine will be completed by August 1, 2020, a 20% probability that the machine will be completed one week later, a 5% probability that the machine will completed two weeks later, and a 5% probability the machine will be completed three weeks after August 1, 2020. What is the transaction price?