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Please show step by steps calculations to the solution. Thank you. Calculating a Bid Price [1.0.3| Consider a project to supply 100 milion postage stamps
Please show step by steps calculations to the solution. Thank you.
Calculating a Bid Price [1.0.3| Consider a project to supply 100 milion postage stamps per year to the U.S. Postal Service for the next five years. You have an idle parcel of land available that cost $750,000 five years ago; if the land were sold today. it would net you $1,125,000 aftertax. The land can be sold for $1,295,000 after taxes in five years. You will need to install $5.1 million in new manufacturing plant and equipment to actually produce the stamps; this plant and equipment will be depreciated straight-line to zero over the project's five-year life. The equipment can be sold for $450,000 at the end of the project. You will also need $425,000 in initial net Calculating a Bid Price [1.0.3| Consider a project to supply 100 milion postage stamps per year to the U.S. Postal Service for the next five years. You have an idle parcel of land available that cost $750,000 five years ago; if the land were sold today. it would net you $1,125,000 aftertax. The land can be sold for $1,295,000 after taxes in five years. You will need to install $5.1 million in new manufacturing plant and equipment to actually produce the stamps; this plant and equipment will be depreciated straight-line to zero over the project's five-year life. The equipment can be sold for $450,000 at the end of the project. You will also need $425,000 in initial net
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