Question 7 Consider a contractor that receives $1,000,000 on a contract if it completes a project on time (75% probability). If the contractor is more than a month ahead of schedule, it receives $1,050,000 (10% probability), but if the contractor is more than a month behind schedule, it only receives $950,000 (15% probability). Using the Expected Value approach, the transaction price the firm expects to report as recognized revenue should be no greater than: $997.500 $1.000.000 51.050,000 5967,500