15%

X Co. needs someone to supply it with 140,000 cartons of machine screws per year to support its manufacturing needs over the next five years, and you have decided to bi install the equipment necessary to start production. You will depreciate it straight line to zero over the project's life. Salvage value in five years is zero. Fixed production costs be 59 per carton. The initial investment in Net Working Capital (NWC)- $150,000. You need not recover the NWC at the end of the project's life. The corporate tax rate is 23 what bid price should you submit? To calculate the bid price, we set the project NPV equal to zero and find the required price. Thus, the bid price represents the critical value the project. [10 M X Co. needs someone to supply it with 140,000 cartons of machine screws per year to support its manufacturing needs over the next five years, and you have decided to bi install the equipment necessary to start production. You will depreciate it straight line to zero over the project's life. Salvage value in five years is zero. Fixed production costs be 59 per carton. The initial investment in Net Working Capital (NWC)- $150,000. You need not recover the NWC at the end of the project's life. The corporate tax rate is 23 what bid price should you submit? To calculate the bid price, we set the project NPV equal to zero and find the required price. Thus, the bid price represents the critical value the project. [10 M