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CARGO Enterprises needs someone to supply it with 1 6 0 0 0 0 rubber balls per year to support its manufacturing needs over the
CARGO Enterprises needs someone to supply it with rubber balls per year to support its manufacturing needs over the next years, and you've decided to bid on the contract. It will cost you $ to install the equipment necessary to start production; you'll depreciate this cost straightline to zero over the project's life. You estimate that in the end of years this equipment can be salvaged for $ Your fixed production costs will be $ per year, and your variable production costs should be $ per carton. You also need an initial investment in net working capital of $ If your tax rate is percent and you require a return of percent on your investment,if there was a downturn in the economy and fixed cost increased to and variable cost increase by what is the new NPVWhat is the initial investmentAnswer for part what is the terminal value?hintdiscountedAnswer for part what is the discounted cash flowAnswer for part what is the bid priceAnswer for part what is the accounting break even pointAnswer for part if there was a downturn in the economy and fixed cost increased to and variable cost increase by and selling price was $what is the new NPV
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