A cost plus incentive contract has the following characteristics: Participation Ratio: 80/20 Target Cost: $100,000 Target Rate:
Question:
A cost plus incentive contract has the following characteristics:
Participation Ratio: 80/20
Target Cost: $100,000
Target Rate: $12,000
Max Fee: $14,000
Minimum fee: $9,000
How much will the seller be reimbursed if the cost of performing the work is $95,000?
problem #2
A cost plus incentive contract has the following characteristics:
Participation Ratio: 80/20
Target Cost: $100,000
Target Rate: $12,000
Max Fee: $14,000
Minimum fee: $9,000
How much will the seller be reimbursed if the cost of performing the work is $85,000?
problem #3
A cost plus incentive contract has the following characteristics:
Participation Ratio: 80/20
Target Cost: $100,000
Target Rate: $12,000
Max Fee: $14,000
Minimum fee: $9,000
How much will the seller be reimbursed if the cost of performing the work is $120,000?
problem #4
A fixed price incentive rate has the following characteristics:
Participation Ratio: 70/30
Target Cost: $100,000
Target Rate: $8,000
Maximum Price: $110,000
How much will the seller be reimbursed if the cost to perform the work is $ 90,000?
problem #5
A fixed price incentive rate has the following characteristics:
Participation Ratio: 70/30
Target Cost: $100,000
Target Rate: $8,000
Maximum Price: $110,000
How much will the seller be reimbursed if the cost to perform the work is $ 102,000?
problem #6
A fixed price incentive rate has the following characteristics:
Participation Ratio: 70/30
Target Cost: $100,000
Target Rate: $8,000
Maximum Price: $110,000
How much will the seller be reimbursed if the cost to perform the work is $ 105,000?
Expert Answer:
Problem 1 The formula for calculating the price of a cost plus incentive contract is Price Target Cost Actual Cost Target Cost x Participation Ratio Actual Cost Target Cost x Incentive Fee Rate where ... View the full answer
Real Estate Finance and Investments
ISBN: 978-0073377339
14th edition
Authors: William Brueggeman, Jeffrey Fisher
