As a newly hired Project Manager, you have been assigned to prepare a bid proposal for a project that your organization is interested in bidding on to possibly obtain a new contract. The assigned project is estimated to cost on the magnitude of $20 million over the course of 5-years. Your organization intends to borrow the entire amount upfront to meet customer requirements and pay the debt off over the 5-year life of the project at an interest rate of 10% compounded annually. Including the principal and interest, what is the total cost of your project at the end of the 5-year life cycle? How much do you need to bid or earn from the work in terms of dollars to pay back the loan and still make some profit and cover operating expenses? Show all work and calculations to include selected formulae. Based on your calculations, what is the minimum estimate your organization should bid on your proposal, and why this is the case?

The Assignment should include a written narrative to explain your calculation and what it means, including commentary and analysis on how the organization should plan their activities and discuss covering costs and profit margins (use your project management skills and think like a Project Manager). As the project manager, you must be able to calculate the minimum estimate your organization should bid on the proposal. Of course, its imperative that the customers requirements are met. Your explanation should demonstrate sound analysis and critical thinking.