Question: You plan to submit a bid for a 6-year contract. To complete the project, you will need $238,500 worth of fixed assets that will be
You plan to submit a bid for a 6-year contract. To complete the project, you will need $238,500 worth of fixed assets that will be depreciated straight-line to zero over the life of the project and then salvaged for 59,100 . You will need $64,300 for net working capital at the start of the project, with the entire amount recoverable at the end of the project. If your costs for this contract will run $99,000 annually, and you face a 21 percent tax rate, what is the minimum annual value you can bid for this contract and still return 16 percent in nominal terms? $176,805.45$168,838,58$158,516,24$179,160.92
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