Ask Question, Ask an Expert

+1-415-315-9853

info@mywordsolution.com

Ask Basic Finance Expert

Dahlia Enterprises needs someone to supply it with 114,000 cartons of machine screws per year to support its manufacturing needs over the next five years, and you've decided to bid on the contract. It will cost you $810,000 to install the equipment necessary to start production; you'll depreciate this cost straight-line to zero over the project's life. You estimate that in five years, this equipment can be salvaged for $64,000. Your fixed production costs will be $319,000 per year, and your variable production costs should be $9.70 per carton. You also need an initial investment in net working capital of $69,000. If your tax rate is 30 percent and your required return is 11 percent on your investment, what bid price should you submit?

Basic Finance, Finance

  • Category:- Basic Finance
  • Reference No.:- M926075

Have any Question? 


Related Questions in Basic Finance

1 what are four primary reasons that behavioral researchers

1. What are four primary reasons that behavioral researchers use case studies? 2. What is a psychobiography? 3. Why are behavioral scientists reluctant to trust case studies as a means of testing hypotheses?

1 explain the differences between a cmo and a mortgage

1. Explain the differences between a CMO and a mortgage pass-through type of security. 2. Define a mortgage purchase "for portfolio." 3. Discuss the purpose and operation of Ginnie Mae. 4. What would be the price of a $1 ...

1 what assumption about the future composite rate of

1. What assumption about the future composite rate of interest on an adjustable rate mortgage is made when determining the APR for federal truth-in-lending disclosures? 2. List the closing cost items which require RESPA ...

Kms corporation has assets with a market value of 500

KMS Corporation has assets with a market value of $500 million, $50 million of which are cash. It has debt of $200 million, and 10 million shares outstanding. Assume perfect capital markets. a. What is its current stock ...

Terry malloy is trying to decide whether his shipping

Terry Malloy is trying to decide whether his shipping company should invest in a new boat.  The new boat will cost $200,000 and it will be fully-depreciated on a straight-line basis over its 10-year useful life.  The new ...

Gork musical instruments produces several products one of

Gork Musical Instruments produces several products, one of which is facing increasing competition from cheaper, plastic alternatives. It expects that in coming years the number of units sold will fall by 10% pa. In the y ...

Read the following example and answer the questions that

Read the following example and answer the questions that follow it. Dr. Jones conducts a research study investigating the effects of a new drug that is intended to reduce the craving for alcohol. A group of alcoholics wh ...

1 in what way is the npv consistent with the principle of

1. In what way is the NPV consistent with the principle of shareholder wealth maximization? What happens to the value of a firm if a positive NPV project is accepted? If a negative NPV project is accepted? 2. Can you nam ...

During 2015 rainbow umbrella corp had sales of 920000 cost

During 2015, Rainbow Umbrella Corp. had sales of $920,000. Cost of goods sold, administrative and selling expenses, and depreciation expenses were $610,000, $125,000, and $155,000, respectively. In addition, the company ...

If the net cash flows from operating investing and

if the net cash flows from operating, investing, and financial activities sum to zero, what is the change in cash compared to last period?

  • 4,153,160 Questions Asked
  • 13,132 Experts
  • 2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

WalMart Identification of theory and critical discussion

Drawing on the prescribed text and/or relevant academic literature, produce a paper which discusses the nature of group

Section onea in an atwood machine suppose two objects of

SECTION ONE (a) In an Atwood Machine, suppose two objects of unequal mass are hung vertically over a frictionless

Part 1you work in hr for a company that operates a factory

Part 1: You work in HR for a company that operates a factory manufacturing fiberglass. There are several hundred empl

Details on advanced accounting paperthis paper is intended

DETAILS ON ADVANCED ACCOUNTING PAPER This paper is intended for students to apply the theoretical knowledge around ac

Create a provider database and related reports and queries

Create a provider database and related reports and queries to capture contact information for potential PC component pro