Heer enterprises requires someone to supply

Assignment Help Macroeconomics
Reference no: EM1332611

Bid price for a contract

Heer Enterprises needs someone to supply it with 198,000 cartons of machine screws per year to support its manufacturing needs over the next 6 years, and you've decided to bid on the contract. It will cost you $1,029,600 to install the equipment necessary to start production; you'll depreciate this cost straight-line to zero over the project's life. You estimate that in 6 years, this equipment can be salvaged for $66,000. Your fixed production costs will be $316,800 per year, and your variable production costs should be $11.22 per carton. You also need an initial investment in net working capital of $99,000. If your tax rate is 32 percent and you require a 19 percent return on your investment, you should submit a bid price of $ . (Round your answer to 2 decimal places, e.g. 32.16.)

 

Reference no: EM1332611

Questions Cloud

Rights pertaining to arrest : Discuss the procedures used in other countries to inform people about their rights pertaining to arrest.
Exemplify the predisposition towards web development : PHP and ASP are both well suited for web development. What are some of the features and capabilities that exemplify this predisposition towards web development? Are there any implementations for running client-side PHP.
Discuss developing a hr strategy : Discuss the developing a HR strategy for a current or prospective company
Explain the new strategic role of human resources : What is the new strategic role of human resources and How does this role affect you in your current position
Heer enterprises requires someone to supply : Heer Enterprises requires someone to supply it with 198,000 cartons of machine screws per year to support its manufacturing needs over the next 6 years.
Determining the bonds-duration : An insurance company is analyzing three bonds and is using duration as the measure of interest rate risk. What is the duration for each of the bonds? What is the relationship between duration and the amount of coupon interest that is paid?
Important for hr management : Why is it important for HR Management to transform from being primarily administrative and operational to becoming a more strategic partner.
What effect has the change in organizational culture : although, in a significant number of cases, these cultures have later tended to diverge radically from the founders' original ideals.
Information overload by changes to their technical system : Are organizations likely to find better solutions to information overload through changes to their technical systems or their social systems, or both? Why?

Reviews

Write a Review

Macroeconomics Questions & Answers

  Inflation targeting be a good policy

Why might it be difficult for the Fed to formally adopt inflation targeting?  Would inflation targeting be a good policy for the Fed in the present economic environment

  In using the taylor rule

In using the Taylor Rule as a guideline for monetary policy, what are the pros and cons of using forecasted values of inflation and output rather than observed values of these variables?

  Describe the present economic crisis situation in europe

Describe the present economic crisis situation in Europe.  Why has it been so difficult for the Europeans to find a solution to this problem?   Comment on what implications the crisis may have for the rest of the world if Europeans are not able to ag..

  Long-term federal government budget problems

Question:. Explain why there are long-term Federal government budget problems. Explain why the base-line forecast of the CBO is misleading.

  Derive and compare demand curve

Question based on Derive and compare demand curve,  Derive Ambrose's demand function for peanuts. How does it compare with Johnny's demand curve for peanuts?

  Problem based on utility function

Problem based on  Utility Function - Problem,  Answer and explain the following using a diagram which is completely labeled.

  Laffer curve : tax rate and tax revenue

Question based on Laffer Curve : Tax Rate and Tax Revenue,  Do raising tax rates necessarily raise tax revenue? What factors affect how tax revenue changes when tax rates change?

  Problem - income elasticity of demand

Problem - Income Elasticity of Demand,  Interpret the following Income Elasticities of Demand (YED) values for the following and state if the good is normal or inferior; YED= +0.5 and YED= -2.5

  Positive balance of payment

Question Positive Balance of Payment: "Things will look good for the US if we could just get to where we are consistently running a positive Balance of Payments."

  Effect of recession on the investment curve

Comment on the effect of a recession on the investment curve (only) and on the level of savings, investment, and the equilibrium real interest rate in the financial crisis that hits United States first starting in fall 2007.

  Affect of falling domestic investment on trade surplus and

How will a fall in domestic investment affect the trade surplus and net capital outflows in the domestic economy, the trade deficit and capital inflows in the rest of the world.

  Crises in the banking sector and bank run

Banking crises crisis decreases depositors' confidence in the banking system. What would be the effect of a rumor about a banking crisis on checkable deposits in such a country?

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd