Problem:
When answering questions five through seven, suppose that instead of agreeing on a fixed contract price, Fluor and Atlantis agreed to the following performance-based schedule: Date of Completion Total Contract Price Probability December 1, 2022 $33,000,000 25% January 31, 2023 $29,000,000 60% After January 31, 2023 $27,000,000 15% On the day that Fluor signed the contract, it estimated the total cost of constructing the plant to be $20,000,000 and during the month of December 31, 2021, Fluor incurred costs of $1,300,000.