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help Saved Exit 5 Use the following information for Questions 20 - 26: WestCoast Brewing Ltd, a manufacturer of small batch craft beer, recently posted

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help Saved Exit 5 Use the following information for Questions 20 - 26: WestCoast Brewing Ltd, a manufacturer of small batch craft beer, recently posted an RFQ (request for quotation) for a supplier to supply it with extra brewing capacity. WestCoast wants to purchase 250,000 cartons of beer per year for the next five years. If you decide to bid on the project, you know that you will have to purchase and install $600,000 of specialized brewing equipment, which has a 30% CCA rate. At the end of the contract, you believe that you will be able to sell this equipment for $80,000. The fixed production costs are $182,000 per year and the variable costs are $625 per carton of beer. You estimate that your NWC will initially rise by $75,000 at the start of the project but you will recover all of this when the project terminates. The firm's tax rate is 30% and you want to earn a 25% return. What price should you bid per carton of beer? The correct value for Step 13 (PV of tax shield from CCA) using the Accelerated Investment Incentive method, is: 03 Multiple Choice -$113.723 -5108.000 help Saved Exit 5 Use the following information for Questions 20 - 26: WestCoast Brewing Ltd, a manufacturer of small batch craft beer, recently posted an RFQ (request for quotation) for a supplier to supply it with extra brewing capacity. WestCoast wants to purchase 250,000 cartons of beer per year for the next five years. If you decide to bid on the project, you know that you will have to purchase and install $600,000 of specialized brewing equipment, which has a 30% CCA rate. At the end of the contract, you believe that you will be able to sell this equipment for $80,000. The fixed production costs are $182,000 per year and the variable costs are $625 per carton of beer. You estimate that your NWC will initially rise by $75,000 at the start of the project but you will recover all of this when the project terminates. The firm's tax rate is 30% and you want to earn a 25% return. What price should you bid per carton of beer? The correct value for Step 13 (PV of tax shield from CCA) using the Accelerated Investment Incentive method, is: 03 Multiple Choice -$113.723 -5108.000

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