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PLEASE ANSWER USING EXCEL and put in cells viewing mode Bid Problem: Your firm has been asked to submit a bid for a new computerized
PLEASE ANSWER USING EXCEL and put in cells viewing mode
Bid Problem: Your firm has been asked to submit a bid for a new computerized cash register system. The system would be installed in 50 stores per year for the next 4 years. Your firm would need to purchase $800,000 worth of specialized equipment. The CCA rate would be 30%. Your firm will be able to sell the machine for $150,000 in 4 years time. Your firm has estimated that it will have to incur labour costs of $40,000 per store to successfully install the system. The project will also require an initial investment in NWC of $120,000. NWC will remain at this level over the life of the project. The tax rate is 40% and the required rate of return is 15%. What is the minimum bid price that your firm should submitStep by Step Solution
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