Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Could you kindly give me the answer directly for this question ? PS: As I have to submit my home work asap I have a
Could you kindly give me the answer directly for this question ?
PS: As I have to submit my home work asap I have a deadline. you may kindly write me just quickly the final answer with main steps (if you want)
Thank you in advance
You are working on a bid to build four cabins a year for the next three years for a local campground. This project requires the purchase of $90,000 of equipment which will be depreciated using straight-line depreciation to a zero book value over the three years. The equipment can be sold at the end of the project for $40,000. You will also need $16,000 in net working capital over the life of the project. The fixed costs will be $18,000 a year and the variable costs will be $88,000 per cabin. Your required rate of return is 14 percent for this project and your tax rate is 34 percent. What is the minimal amount, rounded to the nearest $500, that you should bid per cabinStep by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started