Cost-reimbursable contracts involve payment to the supplier for direct and indirect actual costs and often include fees.
A cost-reimbursable contract is an agreement between two parties called the contractor and the owner. Here the contractor gets the reimbursement for the cost incurred while carrying out the work as per the contract, and also gets an additional fixed fee from the company or an owner.
Here the final pricing of the contract is determined later based on the underlying deal and the actual costs it took to complete a project given to the contractor.
Hence, cost-reimbursable contracts involve payment for direct and indirect actual costs.
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Answer:
Tax shield on depreciation = 600
Explanation:
given data
new piece of equipment = $11,000
salvage value = $1,000
marginal tax rate = 30%
average tax rate = 20%
time period = 5 year
to find out
net effect of annual depreciation on the free cash flow
solution
we know here cost of asset and Salvage value so we get depreciation cost
depreciation cost is = 11000 - 1000 = 10000
and
annual depreciation = 2000
so that Tax shield on depreciation will be
Tax shield on depreciation = 2000 × 30%
Tax shield on depreciation = 600
Answer:
Viral marketing is the Internet version of word-of-mouth marketing.
Explanation:
Viral Marketing is a term that can be best understood by considering the way a virus spreads continuously from one person to another and then to others.
Viral Marketing entails the <em>use of social media and other digital platforms or the internet to spread information.</em><em> </em>
It involves people coming in contact with an organization's marketing message and then sharing it with others who also share it with other people till it "goes viral".
