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Which share ratio to use to calculate PTA for Cost Reimbursible?

Submitted by jason on Thu, 09/11/2008 - 14:57

Forums:

Hi ,

have been posting my doubts here without much success of getting prompt replies. Nevertheless, I hope experts here could give me some clues.

I just have 2 doubts about PTA calculation.

FPIP

1. PTA = ((Ceiling Price - Target Price)/buyer's Share Ratio) + Target Cost

Question : why is it buyer's share ratio? What does PTA measure? Cost of FPIP to the Buyer?

Cost Reimbursible