Your investment what bid price should you summit

Reference no: EM13333759

Calculating a bid price Alson Enterprise need someone to supply it with 185,00 cartons of machine screws per year to support its manufacturing needs over the next five years, and you have decided to bid on the contract. It will cost you $940,000 to install the equipment necessary to start production. Depreciation is straight line to zero over the project’s life estimate in five years. Equipment salvage value is $70,000.fixed costs will be $305,000 per year and variable costs should be 9.25 per carton and your networking capital of $ 75,000. If the tax rate is 35% and required 12 % on your investment what bid price should you summit?

Reference no: EM13333759

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