The software house Lormont is deploying a payroll application at Cassin for fees of 320,000. An additional 40,000 will be paid if go-live succeeds at the first attempt; otherwise no additional amount is due. Lormont assesses the chance of success at the first attempt at 30% and uses the most likely amount (given judgement). What transaction price results from this estimate?
- Fixed fees
- 320,000
- Success fee
- 40,000
- Chance of success at the first attempt
- 30 %