Current Attempt in Progress

On April $1,20$X$1,$ Burchell Construction contracted with The Horton Group to build a parking garage for $$1,200,000.$ The Horton

Group is offering a performance bonus of $$100,000$ if the garage is completed by June $1,20$X$1$; the bonus is reduced by $$25,000$ for

each week that completion of the project is late. Based on experience with similar contracts, Burchell estimates the following

probabilities regarding completion of the garage:

Completion date

June $1,20$X$1$

June $7,20$X$1$

June $14,20$X$1$

Probability of completion

$70\%$

$20\%$

$10\%$

What is the transaction price for this contract?

O $$1,300,000$

O $$1,270,000$

O $$1,290,000$

O $$1,200,000$