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QUEEN Enterprises needs someone tosupply it with 1 7 6 0 0 0 plated bullets peryear to support its manufacturing needsover the next 5 years,

QUEEN Enterprises needs someone tosupply it with 176000 plated bullets peryear to support its manufacturing needsover the next 5years, and you've decidedto bid on the contract. It will cost you$1700000 to install the equipmentnecessary to start production; you'lldepreciate this cost straight-line to zeroover the project's life. You estimate that inthe end of years this equipment can besalvaged for $230000. Your fixedproduction costs will be $380000 peryear, and your variable production costsshould be $9.5 per carton. You also needan initial investment in net working capitalof $250,000. If your tax rate is 0.45percent and you require a return of 0.11percent on your investment,if there was a downturn in the economyand fixed cost increased to 400,000 andvariable cost increase by 10%
What is the initial investment?
what is the terminal value?
What is the bid price?
What is the discounted cash flow?
What is the Acconting break even point?

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