Computation of initial cash outflow

Reference no: EM1312890

You will bid to supply 3 jets per year for each of the next three years to the Navy. To get set up, you will need $60 million in equipment, to be depreciated straight-line to zero over three years, with no salvage value. Total fixed costs per year are $10 million, and variable costs are $12 million per jet. Assuming a tax rate of 35% and a required return of 12%, what is the minimum price at which you should offer to supply the jets?

Reference no: EM1312890

Questions Cloud

Which principle states that assets acquired by business : Which principle states that assets acquired by the business should be recorded at their actual price and company performed services for a customer on account

Calculation of equated annual cost : Calculation of Equated Annual Cost and You are evaluating two different silicon wafer milling machines

Utilization rate and probability values in queuing theory : What is the probability that there will be more than three trucks either being loaded or waiting?

Compute the marginal revenue and price : Prepare a demand schedule for both demand curves and prepare them on an Excel graph. Calculate the marginal revenue for each.

Computation of initial cash outflow : Computation of initial cash outflow and what is the minimum price at which you should offer to supply the jets

Mechanism included in mwco membrane : For NaCl, which MWCO membrane(s) offered for the net movement of water without the movement of NaCl? For glucose, which MWCO membrane(s) offered for the net movement of glucose without net movement of water?

Computing irr, npv, mirr, pi and decision making. : Computing IRR, NPV, MIRR, PI and decision making and Which should actually be selected

True or false questions about incurring loss and pure : Indicate whether each of the following statements is true or false and explain why.

Hypothesis of secondary exposure to cigarette smoking : Test the given hypothesis of the secondary exposure to cigarette smoking during childhood has importance in developing the lung cancer in person.Describe how efficient is surgical treatment for the Ankylosing Spondylitis.

User Account

All Pages