Question: You plan to submit a bid for a 7 -year contract. To complete the project, you will need $239,000 worth of fixed assets that will

 You plan to submit a bid for a 7 -year contract.

You plan to submit a bid for a 7 -year contract. To complete the project, you will need $239,000 worth of fixed assets that will be depreciated straight-line to zero over the life of the project and then salvaged for 58,900 . You will need $64,700 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 $98.500 annually, and you face a 21 percent tax rate, what is the minimum annual value you can bid for this contract and still return 17 percent in nominal terms? $200,694.74$180,050.06$190,372.40$175,473.05

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