What is the exposure of the surety

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A contract for a project has a value of $5,000,000. A performance bond of 25% has been issued for the project. The contractor performs only 50% of the work. The consulting engineer has certified to the owner that 80% has been completed. The surety then tenders out the remainder of the work, with the lowest bid coming in at $2,700,000. What is the exposure (in dollars) of the surety?

Reference no: EM13837316

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