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You want to bid in an auction to supply 10 trucks every year for the next 10 years. The cost of the equipment to manufacture
You want to bid in an auction to supply 10 trucks every year for the next 10 years. The cost of the equipment to manufacture the trucks is $1,000,000. It is depreciated straight line to a book value of $0. The Salvage value is $50,000. The initial NWC is $25,000 which is returned at the end of the life of the project. The Fixed Costs are $75,000 and the Variable Costs are $12,000 per truck. The required rate of return is 13% and taxes are 18%. Find the Bid Price
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