Suppose you have been working with the federal government for a period of time, and you decide to form a small company.
a. Explain the difference between depreciation and the facilities capital cost of money. Specify the key advantages of having facilities capital cost of money as an allowable cost. Justify your response.
b. Compare and contrast the facility costs of VectorCal and the US Government. Determine at least two advantages for using facility costs for both VectorCal and the US Government. Explain your rationale.