Guthrie Enterprises needs someone to supply it with 150,000 cartons of machine screws per year to support its manufacturing needs over the next 5 years, and you've decided to bid on the contract. It will cost you $780,000 to install the equipment necessary to start production; you'll depreciate this cost straight line to zero over the project's life. You estimate that in five years, this equipment can be sold for $50,000. Your fixed production costs will be $240,000 per year and your variable production costs should be $8.5 per carton. You also need an initial investment in net working capital of $75,000. Your tax rate is 35% and you require a 16% return on your investment.

What bid price should you submit on the contract for each carton (use Goal Seek)? This is the part I am unsure of --how to calculate goal seek. I have attatched what I have so far if it is helpful.

Rook Excel Search Lauren Morrison LM Formulas Data Review View Help Share Comments AutoSave C - File Home Insert Draw Page Layout From Text/CSV Le Recent Sources LE Arrom Web Existing Connections Get Data from Tabic/Range Got A Transtorm Data - 8 ALAA Data Analysis WE Queries & Connections Properties Refresh All Edit Links 2 R Clear Reapply Advanced H. Group Ungroup Subtotal Stocks Geography Filter Text to 1 Sort Columns What If Forecast Analysis Sheet Quenes & Connectors DataTypes Sort AFP Data Tools Forecast Outline Analysis F18 f D E F H 1 K L M N o P R S U V B 0 -780000 1 2 3 4 G 5 32500 ATSV sale price book value capital gain tax ATSV 12/5000 12/5000 1275000 1275000 12/5000 240000 240000 240.000 240000 240000 50000 0 0 50000 17500 32500 156000 156000 156000 156000 156000 A 1 2 NCS 3 4 Revenue 5 Variable Costs 6 Fixed Costs 7 EBDT 8 Depreciation 9 EBT 10 Taxes 11 NI 12 13 14 OCF 15 NWC 16 17 NPV 18 IRR 19 20 21 22 23 24 25 26 27 28 29 Sheet1 . Ready HI 1004 C 9:01 AM 11/3/2020