Ask Question, Ask an Expert

+1-415-315-9853

info@mywordsolution.com

Ask Basic Finance Expert

You are evaluating a bid price problem in which the project is five years in duration and involves an initial capital expenditure of $840,000 that is depreciated over 5 years. The salvage value of the equipment is $60,000 and the firm's tax rate is 35%. Fixed costs are $290,000 and total variable costs are $1,360,000. Some of the bid price work has been done for you and you know OCF must be $235,885.19. Furthermore, the net income necessary for a $0 NPV is find outd as $67,885. If, each year, the request for proposal asks for 235 units to be produced, which is closest to the minimum bid price per unit?

Basic Finance, Finance

  • Category:- Basic Finance
  • Reference No.:- M941289

Have any Question? 


Related Questions in Basic Finance

Beta electronics is considering the purchase of testing

Beta Electronics is considering the purchase of testing equipment that will cost $633,000 to replace old equipment. Assume the new equipment will generate before-tax savings of $281,000 over the four years. The new equip ...

1 find the break-even quantity for a firm whose fixed

1. Find the break-even quantity for a firm whose fixed operating cost is $5,700 and variable operating cost is $1.95 per unit, given that its product sells for $7.00 per unit. 2. Calculate the break-even revenue for the ...

1 why can the current movement toward establishing supply

1. Why can the current movement toward establishing supply chains be characterized as a revolution? 2. Compare the concept of a modern supply chain with more traditional distribution channels. Be specific regarding simil ...

1 why is the income approach to value often difficult to

1. Why is the income approach to value often difficult to use on a single-family residential appraisal? 2. What are the differences between the cost and sales comparison approaches to appraising property? 3. What are the ...

Asset a will have a useful life of 9 years and cost 5m it

Asset A will have a useful life of 9 years and cost $5M; it will have installation costs of $750,000 and an estimated salvage or residual value $500,000. Asset B will have a useful life of 3 years and cost $2.5M; it will ...

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 ...

1 the value of common stocks cannot be tied to the present

1. The value of common stocks cannot be tied to the present value of future dividends because most firms don't pay dividends. Comment on the validity, or lack thereof, of this statement. 2. A common fallacy in stock mark ...

An investor is considering the purchase of either an io or

An investor is considering the purchase of either an IO or PO strip from a CMO offering. The portion of the mortgage pool backing this tranche consists of $1,000,000 in mortgages with a remaining maturity of 10 years and ...

1 what is the difference between a debt instrument and an

1. What is the difference between a debt instrument and an equity? 2. Define and briefly explain the following terms: a. Face value b. Coupon c. Coupon rate d. Current yield e. Maturity 3. Explain in which category of de ...

1 some industries described in this chapter are controlled

1. Some industries described in this chapter are controlled by federal regulatory agencies. How does this affect their accounting systems? 2. When reviewing the financial statements of oil and gas companies, why is it im ...

  • 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