Find the bid price, The required rate of return is 13% and

Find the bid price

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Reference no: EM131554758

You want to bid in an auction to supply 10 trucks every year for the next 10 years. The cost of the equipment to manufacture the trucks is $1,000,000. It is depreciated straight line to a book value of $0. The Salvage value is $50,000. The initial NWC is $25,000 which is returned at the end of the life of the project. The Fixed Costs are $75,000 and the Variable Costs are $12,000 per truck. The required rate of return is 13% and taxes are 18%. Find the Bid Price?

Reference no: EM131554758

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