A Contractor Bidding on a Fixed-Price Project Must Develop

question 13

Multiple Choice

A contractor bidding on a fixed-price project must develop

• A) accurate and complete cost estimates and include sufficient contingency costs.
• B) a well-defined project with low risk.
• C) techniques to control costs and reduce expenses to make a larger profit.
• D) techniques to determine the cost-at-completion with actual expenditures.

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Definitions:

Present Value Factor

A factor used to calculate the present value of a future amount, reflecting the time value of money.

Annuities

Financial products that provide regular payments over a set period of time, often used as an income stream for retirees.

r

Often represents the rate of return or interest rate in financial equations and models.

APR

Annual Percentage Rate (APR) is a measure that depicts the actual yearly cost of funds over the term of a loan or the return on an investment, including any fees or additional costs associated with the transaction.