Question: Please explain all work CLEARLY for a Like (not with excel). QUESTION 17 The Army seeks bids on Multiple Use Digitizing Devices (MUDDs). They would
QUESTION 17 The Army seeks bids on Multiple Use Digitizing Devices (MUDDs). They would like to purchase 4 units per year for 3 years. Manufacturing these units require variable costs are $10,000 per MUDD. Rent is $12,000 per year. The project requires $50,000 in equipment which you can sell for $10,000 after 3 years. You will depreciate the machine straight-line to zero over 3 years. Making MUDDs will require a $10,000 increase in NWC, which will be offset at the end of the project . Tax rate is 34%, opportunity cost of capital is 15%. What is the minimum levels of OCF to achieve financial breakeven? 21,498 O 18,996 49,085 3,400 O 2.000
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