CON 170 1ST EXAM | VERIFIED SOLUTION

CON 170 1ST EXAM Question 1 Two offerors submit proposals for radios with essentially the same performance, but different payment terms. Determine the NPV of each offeror: (Use a table like the one below to help you calculate each offeror's NPV) Offer A Cash Flow t= Discount Factor (4 decimal places) Present Value (to nearest dollar) 0 1 2 3 NPV of Offer Offerer A proposes to lease the radios for 3 years with annual payments of $12,000 per year with the first payment due at the beginning of the lease, and subsequent payments due at the beginning of each year. Offeror B proposes to sell the radios for $37,000 with full payment due upon contract award. There is a $1,800 salvage value at the end of the third year. a. Offeror A = ($35,821); Offeror B = ($35,042) b. Offeror A = ($35,642) ; Offeror B = ($35,042) c. Offeror A = ($35,821) ; Offeror B = ($35,227) d. Offeror A = ($35,642) ; Offeror B = ($38,773) Question 2 A cost is ALLOCABLE if, in its nature and amount, it does not exceed that which would be incurred by a prudent person in the conduct of competitive business. True False Question 3 According to FAR Part 10, the extent of market research will vary depending on which factors? a. Urgency, estimated dollar value, complexity, and past experience b. Viability of the requirement, estimated dollar value, available time, and urgency c. Contracting Officer's priority, past experience, estimated dollar value, and urgency d. Commander's priority, complexity, past experience, and viability of the requirement Question 4 Use the data provided in the table below to find the percentage change in price between 2009 and 2013 AND determine what you would expect the price to be in 2013 if the Government paid $164 in 2009. Year Widget PPI 2008 100 2009 103 2010 99 2011 107.5 2012 115.9 2013 122.5