Your company has been approached to bid on a contract to sell 19,000 voice recognition (VR) computer keyboards a year for four years. Due to technological improvements, beyond that time they will be outdated and no sales will be possible. The equipment necessary for the production will cost $4.9 million and will be depreciated on a straight-line basis to a zero salvage value. Production will require an investment in net working capital of $325,000 to be returned at the end of the project and the equipment can be sold for $650,000 at the end of production. Fixed costs are $1.25 million per year, and variable costs are $135 per unit. The tax rate is 40 percent, and the required return is 13 percent. What bid price should you set for the contract?
Your company has been approached to bid on a contract to sell 19,000 voice recognition (VR)...
Your company has been approached to bid on a contract to sell 4,800 voice recognition (VR) computer keyboards per year for four years. Due to technological improvements, beyond that time they will be outdated and no sales will be possible. The equipment necessary for the production will cost $3.1 million and will be depreciated on a straight-line basis to a zero salvage value. Production will require an investment in net working capital of $395,000 to be returned at the end...
Your company has been approached to bid on a contract to sell 3,500 voice recognition (VR) computer keyboards a year for four years. Due to technological improvements, beyond that time they will be outdated and no sales will be possible. The equipment necessary for the production will cost $3.1 million and will be depreciated on a straight-line basis to a zero salvage value. Production will require an investment in net working capital of $88,000 to be returned at the end...
Your company has been approached to bid on a contract to sell 5,500 voice recognition (VR) computer keyboards a year for four years. Due to technological improvements, beyond that time they will be outdated and no sales will be possible. The equipment necessary for the production will cost $4.5 million and will be depreciated on a straight-line basis to a zero salvage value. Production will require an investment in net working capital of $465,000 to be returned at the end...
Your company has been approached to bid on a contract to sell 5,500 voice recognition (VR) computer keyboards a year for four years. Due to technological improvements, beyond that time they will be outdated and no sales will be possible. The equipment necessary for the production will cost $4.5 million and will be depreciated on a straight-line basis to a zero salvage value. Production will require an investment in net working capital of $465,000 to be returned at the end...
Your company has been approached to bid on a contract to sell 5,250 voice recognition (VR) computer keyboards a year for four years. Due to technological improvements, beyond that time they will be outdated and no sales will be possible. The equipment necessary for the production will cost $4 million and will be depreciated on a straight-line basis to a zero salvage value. Production will require an investment in net working capital of $440,000 to be returned at the end...
Your company has been approached to bid on a contract to sell 5,800 voice recognition (VR) computer keyboards a year for four years. Due to technological improvements, beyond that time they will be outdated and no sales will be possible. The equipment necessary for the production will cost $5.1 million and will be depreciated on a straight-line basis to a zero salvage value. Production will require an investment in net working capital of $495,000 to be returned at the end...
Your company has been approached to bid on a contract to sell 23,000 voice recognition (VR) computer keyboards per year for four years. Due to technological improvements, beyond that time they will be outdated and no sales will be possible. The equipment necessary for the production will cost $4,400,000 and will be depreciated on a straight-line basis to a zero salvage value. Production will require an investment in net working capital of $160,000 to be returned at the end of...
Your company has been approached to bid on a contract to sell 5,550 voice recognition (VR) computer keyboards a year for four years. Due to technological improvements, beyond that time they will be outdated and no sales will be possible. The equipment necessary for the production will cost $4.6 million and will be depreciated on a straight- line basis to a zero salvage value. Production will require an investment in net working capital of $470,000 to be returned at the...
Your company has been approached to bid on a contract to sell 5,500 voice recognition (VR) computer keyboards a year for four years. Due to technological improvements, beyond that time they will be outdated and no sales will be possible. The equipment necessary for the production will cost $4.5 million and will be depreciated on a straight-line basis to a zero salvage value. Production will require an investment in net working capital of $465,000 to be returned at the end...
Your company has been approached to bid on a contract to sell 5,050 voice recognition (VR) computer keyboards a year for four years. Due to technological improvements, beyond that time they will be outdated and no sales will be possible. The equipment necessary for the production will cost $3.6 million and will be depreciated on a straight- line basis to a zero salvage value. Production will require an investment in net working capital of $420,000 to be returned at the...