Problemyou are working on a bid to build two city parks a, Ask an Expert

Accounting

Problem:

You are working on a bid to build two city parks a year for the next three years. This project requires the purchase of $180,000 of equipment that will be depreciated using straight-line depreciation to a zero book value over the 3-year project life. The equipment can be sold at the end of the project for $34,000. You will also need $20,000 in net working capital for the duration of the project. The fixed costs will be $16,000 a year and the variable costs will be $168,000 per park. Your required rate of return is 15 percent and your tax rate is 40 percent.

Required:

Question: What is the minimal amount you should bid per park?

Note: Show supporting computations in good form.

View complete question

Accounting Basics, Accounting

Category:- Accounting Basics
Reference No.:- M91170171

Have any Question?Write your Review or question?

Related Questions in Accounting Basics

Question discipline awareness presentationthe purpose of

Question: Discipline Awareness Presentation The purpose of this assignment is for you to become more familiar with the interests, goals, research methods, and information dissemination channels associated with the primar ...

Question - primo industries collected 105000 from customers

Question - Primo Industries collected $105,000 from customers in 2015. Of the amount collected, $25,000 was for services performed in 2014. In addition, Primo performed services worth $40,000 in 2015, which will not be c ...

Question - richard starts his own business in 2016 with

Question - Richard starts his own business in 2016 with $2,000 owner's capital. In 2016, he bought 10 textbooks at $1,000 and sold 5 of them at $600. There is no other transaction during 2016. What is the cost of goods s ...

Question - make an adjusting journal entriesat december 31

Question - Make an Adjusting Journal Entries. At December 31, the Long-Term Investments (Available-for-sale securities or "AFS") had a fair value of $180,190. The AFS Investment was originally purchased on May 1, 2017 fo ...

Question write an improvement plan in a 1050- to 1400-word

Question: Write an improvement plan in a 1,050- to 1,400-word document. You are a Supply Chain Manager of a building supply company. Your company sells building materials to building contractors, home improvement constru ...

Have you ever been involved in the budget process at your

Have you ever been involved in the budget process at your organization? If so, describe your role and responsibilities. Do you think people at your level in the organization should provide budget inputs, and why or why n ...

Question -a calculate the ending balance of the

Question - (a) Calculate the ending balance of the Manufacturing Overhead account for November. Lawler and Associates, a C.P.A. firm, uses job order costing to capture the costs of its audit jobs. There were no audit job ...

Question - canberry corporation had net income of 116000

Question - Canberry Corporation had net income of $116,000, beginning total assets of $856,000 and ending total assets of $760,000. Calculate its return on total assets? 738% 15.3% 655% 14.4% 13.6%

Question purpose of assignmentthis assignment is critical

Question: Purpose of Assignment This assignment is critical for students to gain a fundamental understanding of management's and auditor's responsibility for detecting errors, material fraud, and illegal acts. This assig ...

Question - what is the effect on total assets liabilities

Question - What is the effect on total assets, liabilities, and equity of a partnership when a partner is admitted by purchasing an existing partner's interest? Why? What is the effect on the existing partners' capital a ...

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

Recent Questions

Ask Accounting Basics Expert