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You are working on a bid to build two apartment buildings a year for the next three years. This project requires the purchase of $847000

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You are working on a bid to build two apartment buildings a year for the next three years. This project requires the purchase of $847000 of equipment that will be depreclated using straight-line depreclation to a zero book value over the project's life. Ignore bonus depreciation. The equlpment can be sold at the end of the project for $415,000. You will also need $165,000 In net working capital over the life of the project. The fixed costs will be $528,000 a year and the variable costs will be $1,640,000 per building. Your required rate of return Is 16 percent for thls project and your tax rate is 24 percent. What is the minimal amount, rounded to the nearest $100, you should bid per building? Multiple Choice $4158.400 $4,489.500 $2.065.700 $2.780.600 $2.244.800

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