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On January 1 Revis Consulting entered into a contract to complete a cost reduction program for Green Financial over a six-month period. Revis will receive
On January 1 Revis Consulting entered into a contract to complete a cost reduction program for Green Financial over a six-month period. Revis will receive $53.600 from Green at the end of each month. If total cost savings reach a specific target. Revis will receive an additional $26.800 from Green at the end of the contract. but if total cost savings fall short. Revis will refund $26.800 to Green. Revis estimates an 80% chance that cost savings will reach the target and calculates the contract price based on the expected value of future payments to be received
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