A fixed-price-incentive -- firm target (FPIF) contract has a target cost of $100,000, a target profit of $15,000, a target price of $115,000, a ceiling price of $132,000, and a share arrangement of 80/20. If the seller does the work for $80,000 actual cost, how much profit does the buyer pay to the seller?

A fixed-price-incentive -- firm target (FPIF) contract has a target cost of $100,000, a target profit of $15,000, a target price of $115,000, a ceiling price of $132,000, and a share arrangement of 80/20. If the seller does the work for $80,000 actual cost, how much profit does the buyer pay to the seller?

Entrepreneurial Finance

6th Edition

ISBN:9781337635653

Author:Leach

Publisher:Leach

Chapter8: Securities Law Considerations When Obtaining Venture Financing

Section: Chapter Questions

Problem 1cM

See similar textbooks

Similar questions

The target cost of a fixed price contract is $50,000. The price of the contract is targeted at $75,000 with a ceiling price of $100,000. The share ratio is 80/20. What is the Point of Total Assumption of this procurement? $100,000 $125,000 $81,250 $112,500
A company is bidding for three contracts which are awarded independently of each other. The board estimates its chances of winning Contract X as 55%, of winning Contract Y as 25% and of winning Contract Z as 20%. The profits from X, Y and Z are estimated to be P600,000, P700,000 and P850,000 respectively. The expected value to the company of the profits from all three contracts will be closest to:
Suppose that on June 5, a Japanese Yen future contract is purchased at the ¥ 123 per dollar (opening price). Contract is for $ 5,000. Initial margin level is 15% of the value of the contract, and maintenance level is %10 of the value of the contract. The future price is ¥ 120 per dollar on June 6. There will be 15% increase in future price on June 7 and 8% decline on June 8? What is the value of the actual margin at the end of the date June 8? (ASSUMPTION: As margin account reaches above the initial margin level, withdraw the amount above the initial margin level)
ABC Company has the following mutually exclusive projects. Year Project A Project B 0 -$19,520 -$16,800 1 11,500 9,500 2 8,750 7,100 3 2,500 3,500 If the company uses the Profitability Index to rank these two projects, which project should be chosen if the appropriate discount rate is 15 percent?
Plucky Company recently entered into a contract in which Plucky charges a price of actual cost plus 20%. If the price charged based on this formula is less than the target price of $4,500,000, Plucky is entitled to also receive 50% of the difference between the actual cost and the cost that would lead to the formula price equalling the target price. Plucky incurred an actual cost of $3,600,000. How much will Plucky make from the contract? a) $4,320,000 b) $4,395,000 c) $4,410,000 d) $4,500,000 Pleae help me sir.. it's too difficult
You have a CPIF contract with a target cost of $3,125,000 and a target fee of $156,250. The associated clause states… “(e) Fee payable (1) The fee payable under this contract shall be the target fee increased by 15 cents for every dollar that the total allowable cost is less than the target cost or decreased by 20 cents for every dollar that the total allowable cost exceeds the target cost. In no event shall the fee be greater than 7 percent or less than 2 percent of the target cost.” Given a final cost of $2,750,000 determine the final fee and the final contract funding.. Single choice.
ABC Company has the following mutually exclusive projects. Year Project A Project B 0 -$19,520 -$16,800 1 11,500 9,500 2 8,750 7,100 3 2,500 3,500 If the company uses the NPV method to rank these two projects, which project should be chosen if the appropriate discount rate is 15 percent?
ABC Company has the following mutually exclusive projects. Year Project A Project B 0 -$19,520 -$16,800 1 11,500 9,500 2 8,750 7,100 3 2,500 3,500 If the company uses the Profitability Index to rank these two projects, which project should be chosen if the appropriate discount rate is 15 percent? Project B Project A Both projects Neither projects
13. Plucky Company recently entered into a contract in which Plucky charges a price of actual cost plus 20%. If the price charged based on this formula is less than the target price of $4,500,000, Plucky is entitled to also receive 50% of the difference between the actual cost and the cost that would lead to the formula price equalling the target price. Plucky incurred an actual cost of $3,600,000. How much will Plucky make from the contract? a) $4,320,000b) $4,395,000c) $4,410,000d) $4,500,000
ABC Co. sells Product X, Product Y, and Product Z to a customer for a lump sum price of P90,000. The products will be delivered at a different point in time. ABC Co. regularly sells products X, Y and Z separately at P20,000, P40,000 and P60,000, respectively. How much is the allocated transaction price of Product Z?
Under the surplus-share treaty, how much will the insurance company will have tocover for the client’s claim if the client has a $50,000 claim and the insurance company reinsuresevery client with a claim amount of at least $30,000 with a maximum claim of $100,000.
A firm will choose betwen two mutually exclusive projects. Project A costs $15,000 and pays out $25,000 in one year. Project B costs $30,000 and pays out $43,000 in one year. Project A's IRR equals 67% and its NPV = $8,585. Project B's IRR = 43% and its NPV = $10,566. Which project should the firm pick?