Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

please i need it now Man entreprises is working on a bid to build two apartment buildings a year for the next 5 years for

image text in transcribed please i need it now
Man entreprises is working on a bid to build two apartment buildings a year for the next 5 years for a local college This project require purchase of $1,000,000 of equipment that will be depreciated using straight-line depreciation to a zero book al over the project's life. The ent can be sold at the end of the project for $225,000. You will also need $180,000 in met woning aastal over the Me of the project. The fixed costs will be $628,000 a year and the variable costs will be $1.298,000 per bulding. Your required rate of tenuis 15 perceed for this project and your tax rate is 35 percent What is the minimal amount the company should bid per bullding? N.B. Please follow the method that was used during the explanation and not the one in the solution sheet

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Students also viewed these Finance questions