Question: Wilco Inc, agrees to create a proprietary software application for Seminole Corporation. If the software is delivered on-time, Wilco will be paid $100,000. There is
Wilco Inc, agrees to create a proprietary software application for Seminole Corporation. If the software is delivered on-time, Wilco will be paid $100,000. There is a $10,000 penalty for each week that the software is delayed. Wilco estimates that there is an 80% chance that the software will be delivered on-time, a 10% chance that it will be one week late, and 10% chance that it will be two weeks late. If Wilco recognizes income using the expected value approach. how much revenue should Wilco recognize? $97.500 $100,000 $97,000 Some other answer $90,000
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