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TB 10-124 Your company wants to bid on the sale of 10 ... Your company wants to bid on the sale of 10 customized machines

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TB 10-124 Your company wants to bid on the sale of 10 ... Your company wants to bid on the sale of 10 customized machines per year for five years. The initial costs for the project are $1.6 million with a salvage value of $800,000 after five years. The manufacturing equipment belongs in a 30% CCA class. Annual fixed costs are estimated at $700,001. Variable cost per machine is $81,501. The project requires net working capital of $120,001. The company has a 34% tax rate and desires a 15% return on the project. What is the minimum price that the company should bid per single machine? Multiple Choice $197.320 $219,887

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