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Please solve using TVM PV: FV: N: I/Y: CPT PMT: how do I find FV? You are working on a bid for a 6-year contract.

image text in transcribedPlease solve using TVM

PV:

FV:

N: I/Y:

CPT PMT:

how do I find FV?

You are working on a bid for a 6-year contract. Thus far, you have determined that you will need $164,300 for fixed assets that will be depreciated straight-line to zero over the life of the project and then salvaged for 39,600 . You will need $48,800 for net working capital at Time 0, but the entire amount will be recoverable at the end of the project. If your costs for this contract will run $89,000 annually, and you face a 21 percent tax rate, what is the minimum annual value you can bid for this contract and still return 18 percent in nominal terms? Necessary OCF =$ Minimum bid =$ Allowed attempts: 3

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