Question
23. SpaceX is going to bid on supplying NASA with 12 Rocket doors a year for three years. They will need to purchase another distribution
23. SpaceX is going to bid on supplying NASA with 12 Rocket doors a year for three years. They will need to purchase another distribution center for $95,000 that has a life of three years. It will be fully depreciated to zero salvage value after the three years using straight-line depreciation. SpaceX will have to set aside an additional $45,000 in inventory cost in net working capital to fund this project. SpaceX rockets will cost $9,000 each to make. The relevant cost of capital is 22% and the marginal tax rate 25%. There are seven other companies bidding for this contract. What bid price should SpaceX make per rocket door? Question 23 options: A) $1,124,201.56 B) $24,750.85 C) $14,388.98 D) $46,967.80 E) $3,913.98
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