Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

You can do in Excel Alson Enterprises needs someone to supply 185,000 boxes of machine screws per year to meet your needs manufacturing for the

image text in transcribed

You can do in Excel

Alson Enterprises needs someone to supply 185,000 boxes of machine screws per year to meet your needs manufacturing for the next five years. You have decided to bid on the contract. The Installation of the equipment needed to start production will cost you $940,000. You will depreciate this cost on a straight-line basis to zero over the life of the project. Esteem that in five years, this equipment may have a salvage value of $70,000. Their fixed production costs will be $305,000 per year and production costs variables should be $9.25 per box. You also need an initial investment in Net working capital of $75,000. If the tax rate is 35% and requires a return on your investment of 12%, what bid price would you submit? 18. Clculo de un precio de licitacin (OA3) Alson Enterprises necesita que alguien le suministre 185000 cajas de tornillos para maquinaria al ao a fin de cubrir sus necesidades de fabricacin durante los prximos cinco aos. Usted ha decidido licitar el contrato. La instalacin del equipo necesario para arrancar la produccin le costar 940000 dlares. Este costo lo depreciar usted en forma lineal a cero durante la vida del proyecto. Estima que en los cinco aos, este equipo puede tener un valor de rescate de 70000 dlares. Sus costos de produccin fijos sern de 305000 dlares anuales y los costos de produccin variables deben ser de 9.25 dlares por caja. Tambin necesita una inversin inicial en capital de trabajo neto de 75000 dlares. Si la tasa de impuestos es de 35% y requiere un rendimiento sobre su inversin de 12%, qu precio de licitacin sometera

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Technical Analysis Of The Financial Markets

Authors: John J. Murphy

1st Edition

0735200661, 978-0735200661

More Books

Students also viewed these Finance questions

Question

Describe the general structure of a PL/SQL block.

Answered: 1 week ago

Question

Describe various competitive compensation policies.

Answered: 1 week ago