1.You are considering bidding on a project to make new cases for mobile phones.The project details include:

Upfront costs of $350,000 for a new injection-moulding machine.

4 year life

$30,000 in yearly pre-tax operating costs

Initial investment of $50,000 in working capital

Your company has a tax rate of 30%

Your company's required rate of return is 10%

At the end of 4 years you can sell the equipment for $30,000

There is no depreciation consideration for this equipment

a.Complete the following table and calculate the net present value for the project costs.

NPV

1. You are considering bidding on a project to make new cases for mobile phones. The project details include: Upfront costs of $350,000 for a new injection-moulding machine. . 4 year life $30,000 in yearly pre-tax operating costs . Initial investment of $50,000 in working capital Your company has a tax rate of 30% . Your company's required rate of return is 10% At the end of 4 years you can sell the equipment for $30,000 . There is no depreciation consideration for this equipment a. (6 marks) Complete the following table and calculate the net present value for the project costs. Year Cash Flows PV 0 1 2 3 4 NPV b. )What is the projects Equivalent Annual Cost? c. If the contract requires you to make 25,000 cases, what is the minimum amount you would bid/case