Trump Corporation enters into a contract valued $5M with a Russian customer to deliver Covid-19 vaccination by June 30, 2021. Upon perusing the contract a performance obligation clause stipulated that there is 5% penalty to be deducted from the agreed price for each fortnight the product is delivered late. There is a 75% probability that the product will be delivered on time a 25% chance that it will be delivered 6 weeks late. Calculate the estimated transaction price of this contract.

a.

$4 500 000

b.

$5 000 000

c.

$4 812 500

d.

$4 625 000