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Tucker is becoming more confident with the numbers in the proposal, but is uneasy about the short - term nature of the contract. He is

Tucker is becoming more confident with the numbers in the proposal, but is uneasy about the short-term nature of the contract. He is wondering if it might be advantageous to try and renegotiate the contract in an exchange for a longer commitment for the client. His discussion with you included a fixed price for 5 years followed by a reasonable growth period. He is hoping that some incentive will be enough to get a 5-year commitment. Complete your calculations under the Q.1 tab. You must calculate the new NPV and IRR given your suggested price. You must also include the impact to the customer by calculating the cost of the contract before and after making price changes. Should Hansson accept this, and would you accept this if you were the customer?Tucker is becoming more confident with the numbers in the proposal, but is uneasy about the short-term nature of the contract. He is wondering if it might be advantageous to try and renegotiate the contract in an exchange for a longer commitment for the client. His discussion with you included a fixed price for 5 years followed by a reasonable growth period. He is hoping that some incentive will be enough to get a 5-year commitment. Complete your calculations under the Q.1 tab. You must calculate the new NPV and IRR given your suggested price. You must also include the impact to the customer by calculating the cost of the contract before and after making price changes. Should Hansson accept this, and would you accept this if you were the customer?
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