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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 plated bullets peryear to support its manufacturing needsover the next years, and you've decidedto bid on the contract. It will cost you$ to install the equipmentnecessary to start production; you'lldepreciate this cost straightline to zeroover the project's life. You estimate that inthe end of years this equipment can besalvaged for $ Your fixedproduction costs will be $ peryear, and your variable production costsshould be $ per carton. You also needan initial investment in net working capitalof $ If your tax rate is percent and you require a return of percent on your investment,if there was a downturn in the economyand fixed cost increased to andvariable cost increase by
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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