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While having lunch with one of your fellow program managers, they tell you that in the next couple of weeks they are going into final

While having lunch with one of your fellow program managers, they tell you that in the next couple of weeks they are going into final negotiations with a new customer. They also tell you that they plan to ask for a 30% profit on a cost-plus contract. When you tell them that seems excessive for a FFP contract, they ask you why? How do you describe the relationship between risk and reward with respect to contracting to your peer? Provide two (2) examples which illustrate this relationship

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