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Martin Enterprises needs someone to supply it with 1 2 9 , 0 0 0 cartons of machine screws per year to support its manufacturing
Martin Enterprises needs someone to supply it with cartons of machine screws
per year to support its manufacturing needs over the next five years, and youve decided to bid
on the contract. It will cost you $ to install the equipment necessary to start
production; youll depreciate this cost straightline to zero over the projects life. You estimate
that, in five years, this equipment could be worth $before taxes 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 $ Assume your tax
rate is percent and you require a return discounting rate of percent on your investment
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