1. Which one of the following best describes DoD philosophy of budgeting for a Cost Plus Award Fee contract?

Budget for the estimated cost plus the fixed fee to be paid regardless of contractor performance

Budget for the target cost plus the target fee

Budget for the estimated cost plus the base fee plus the entire earnable award fee

Budget for the ceiling estimated cost plus the base fee only

First, distinguish between the two stock types. Second, using the stock market database, find a value stock and a growth stock and show how their returns are different.

2. National Event Coordinators is contemplating the acquisition of a new tent that will be used for major outdoor events. The purchase price is $143,000. The firm uses MACRS depreciation which allows for 33.33 percent, 44.44 percent, 14.82 percent, and 7.41 percent depreciation over years 1 to 4, respectively. The tents have a 4-year life after which time they are worthless. The tent can be leased for $41,000 a year. The firm can borrow money at 9 percent and has a 33 percent tax rate. What is the net advantage to leasing?

$-2,137

$5,758

$2,061

$6,644

$110