Question

An investigator on an NSF grant has permission to rebudget $150,000 in renovation monies into

equipment. If the institution's F&A (indirect cost) rate (based on MTDC) is 54%, how much money
will be available for the equipment?
a. $69,000
b. $81,000
c. $97,403
d. $150,000

Answer 1

The investigator has $150,000 to prebudget into equipment. The institution's F&A rate is 54%. The amount available for equipment is $69,000.

Step-by-step explanation:

The investigator has permission to prebudget $150,000 in renovation monies into equipment. The institution's F&A rate is 54%. To determine the amount available for equipment, we need to subtract the indirect cost from the total budget:

Amount available for equipment = $150,000 - (54% of $150,000)

Amount available for equipment = $150,000 - ($81,000)

Amount available for equipment = $69,000