You are trying to win a government contract. Here is some information regarding this contract. – You need to produce 5 modified trucks per year for 4 years – You can buy the truck platforms for $10,000 each ( this is a variable cost) – Facilities will be leased for $24,000 per year (you should realize this is a fixed cost) – Labor and material costs are $4,000 per truck (this is another variable cost) – Need $60,000 investment in new equipment, depreciated straight-line to a zero salvage – Actually expect to sell the equipment for $5000 at the end of 4 years – Need $40,000 in networking capital – Tax rate is 39% – Required return is 20%

What is the bid price?

Answer rating: 100% (QA)

Answers Need tofind operating cash flow required to carn a 20 return The price can then ... View the full answer