Answered step by step
Verified Expert Solution
Question
1 Approved Answer
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.
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. 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: 3Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started