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Trava [24]
3 years ago
5

225,000 cartons of machine screws per year to support its manufacturing needs over the next seven years, and you've decided to b

id on the contract. It will cost you $1,230,000 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 seven years, this equipment can be salvaged for $75,000. Your fixed production costs will be $360,000 per year, and your variable production costs should be $13.20 per carton. You also need an initial investment in net working capital of $112,500, all of which will be recovered when the project ends. Your tax rate is 32 percent and you require a 13 percent return on your investment. What bid price per carton should you submit?
Business
1 answer:
Arlecino [84]3 years ago
8 0

Answer:

good yjjyfcbjttewthbjk tying hours ghtyy

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