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Question - Cailor Corporation entered into an agreement with Shea Corporation to design and install sophisticated video surveillance equipment on January 5, 2021. The contract stipulates that Cailor will design and install the surveillance equipment at a cost of $2 million. Delivery is scheduled for April 15, 2021 and payment is due on June 1 2022. The amount of interest on similar projects for this time period equates to $80,000. In addition, if Corporation delivers and installs the equipment prior to April 1, 2021 Cailor will pay an additional $50,000. Shea Corporation is experienced in these types of designs/installations and believes that they are 80% likely to complete the project prior to April 1, 2021. What is the contract price?
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