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please help You sign a FPIF contract with a seller with the following parameters: Target Cost = 420,000 USD Target Profit = 40,000 USD Target
please help
You sign a FPIF contract with a seller with the following parameters:
Target Cost = 420,000 USD
Target Profit = 40,000 USD
Target Price = 460,000 USD
Ceiling Price = 525,000 USD
Share Ratio = 60/40
The contractor completes the contract for 440,000 USD. Calculate the actual profit received by
the seller, and what is the actual price of the contract?
2 With the following information on hand, calculate the Point of Total Assumption.
Target Cost = 375,000 USD
Target Profit = 25,000 USD
Target Price = 400,000 USD
Ceiling Price = 450,000 USD
Share Ratio = 75% buyer, and 25% seller
3 Practice Question: 3
You sign a CPIF contract with a seller with the following parameters:
Target Cost: 200,000 USD
Target Fee: 20,000 USD
Share Ratio; 70/30
Maximum Fee: 30,000 USD
Minimum Fee: 10,000 USD
The seller completes the work for 180,000 USD. How much will the seller receive?
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Valuation Workbook Step By Step Exercises And Tests To Help You Master Valuation
Authors: McKinsey & Company Inc.
7th Edition
1119611814, 978-1119611813
