Dr. Privacy, Inc. specializes in shredding office documents anddestroying computer hard drives for various clients in the U.S. InJune 2018, it enters into a contract with the U.S. government toproperly discard computer hard drives. The contract specifies afixed fee of $50,000 for the first 25,000 hard drives, and anadditional $5,000 for each incremental 10,000 drives. The companyestimates a 65% chance of handling 25,000 drives or fewer, 30%chance of handling more than 25,000 drives but fewer than 35,000drives, and 5% chance of handling more than 35,000 drives but fewerthan 45,000 drives.
Required: Assuming that the company determines transaction priceas the expected value
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