Question: 4 For your office work you need a high end photocopy machine which is available to rent for 150 USD per day and the operating

4 For your office work you need a high end photocopy machine which is available to rent for 150
USD per day and the operating cost is 25 USD. The price of this machine is 125,000 USD. You
will need this machine for several months, therefore you start calculating whether you should
purchase it or not. Calculate the number of days after which it would be advisable to buy this
machine.
5 Your organization has signed a cost plus incentive fee contract with a seller. The cost of the
contract is 100,000 USD and the target profit is 10% of the target cost. The sellers share ratio is
25% and has spent 90,000 USD to complete the task.
Calculate the profit and actual price paid to the seller.
6 Your company has signed a fixed price incentive fee contract with a seller with the following
details:
Target Cost = 300,000 USD
Target Incentive Fee = 50,000 USD
Share Ratio = 70/30
Ceiling Price = 400,000 USD
Actual Cost = 320,000 USD
Calculate the actual price paid to the seller.

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