Answered step by step
Verified Expert Solution
Link Copied!
Question
1 Approved Answer

PLEASE DO FOLLOWING PROBLEM; ANSWER IS PROVIDED BUT I WANT TO SEE THE STEPS TO GET THERE- THANKS Cost Plus Incentive Fee Calculation. In this

PLEASE DO FOLLOWING PROBLEM; ANSWER IS PROVIDED BUT I WANT TO SEE THE STEPS TO GET THERE- THANKS

Cost Plus Incentive Fee Calculation. In this cost plus incentive fee contract, the cost is estimated at $210,000 and the fee at $25,000. The project is complete, and the buyer has agreed that the costs were, in fact, $200,000. Because the seller's costs came in lower than the estimated costs, the seller shares in the savings: 80% to the buyer and 20% to the seller. Calculate the final fee and final price.

The answer is :

Fee $27,000 Price: $227,000

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image
Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Essentials Of Real Estate Finance

Authors: Doris Barrell

15th Edition

1475462077, 978-1475462074

More Books

Students explore these related Finance questions