Question: You are working on a bid for a 7-year contract. Thus far, you have determined that you will need $159,000 for fixed assets that will

You are working on a bid for a 7-year contract. Thus far, you have determined that you will need $159,000 for fixed assets that will be depreciated straight-line to zero over the life of the project and thensalvaged for47,400.You will need $33,200 for net working capital at Time 0, but the entire amount will be recoverable at the end of the project.If your costs for this contract will run $120,500annually, and you face a 21 percent tax rate, what is the minimum annual value you can bid for this contract and still return 19in nominal terms?

Minimum bid = $

(detail excel explanation please)

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