GAZple Piece has a cost-plus-fixed fee contract with the air force to build jets. The government will buy any additional

[answerhappygod]

GAZple Piece has a cost-plus-fixed fee contract with the air
force to build jets. The government will buy any additional
equipment that it needs on a justified cost-savings basis. The
incremental tax rate for the company is 15%. The company has
computed the following labor savings for a new equipment that costs
$45000: Period 1 Period 2 Before Tax $30,000 $30,000 After Tax
$25,500 $25,500 The company has an after-tax time value of money of
4% and the federal government has a before-tax time value of money
of 25%. Should the equipment be purchased?
INDETERMINATE
COMPANY-NO;
GOVT-NO
COMPANY-NO; GOVT-YES
COMPANY-YES; GOVT-NO
COMPANY-YES; GOVT-YES