Suppose the contract contains a penalty clause of $40,000 per month for a late delivery of THE SYSTEM. There is general agreement among the technical team that they have a 50% probability of being late by one month, a 10% probability of being late by two months and a 5% probability of being late by three months. What is your risk exposure?
scheduled delivery is after 24 month and 3 month for beta testing ..(info if needed)