Page 1: Listen 2 3 What is the bid price for the following situation You have been approached by a client interested in buying 120,000 Widgets a year from you for 5 years and has asked you to submit a bid for his consideration To be able to produce the widgets, you need to invest in 250,000 in equipment. The equipment han fixable life of 10 years and will be deprecated in trishtline At the end of the years, the potent can be sold for $70,000 (macket or scrap Value The variable cost of producing the widgets is sis per unit ind you will incur in a fixed cost of $60.000 a year. You have estimated you will need 520.000 today in working capital. The appropriate discounting rate for this type of projects is 13%. The corporate tax rate applicable to you in this case is 2011 What is the minimum price you would charge for each widget ibid price to be given by you to the client)? 5