Percent return on its investments

Reference no: EM13754818

The No-Shoplift Security Company is interested in bidding on a contract to provide a new security system for a large department store chain. The new security system would be phased into 10 stores per year for 5 years. No-Shoplift can purchase the hardware for $50,000 per installation. The labor and material per installation is approximately $15,000. In addition, No-Shoplift will need to purchase $100,000 in new equipment for the installation, which will be depreciated to zero using the straight-line method over five years. This equipment will be sold in five years for $25,000. Finally, an investment of $50,000 in net working capital will be needed. Assume that the relevant tax rate is 34 percent. If the No-shoplift Security Company requires a 10 percent return on its investments, what price should it bid?

Reference no: EM13754818

Questions Cloud

Difference between fixed costs in the short-run : What is the difference between fixed costs in the short-run and fixed costs in the long-run - What is the difference between fixed costs in the short-run and fixed costs in the long-run?

What did shays hope his rebellion would force massachusetts : What did Shays hope his rebellion would force Massachusetts to suspend?

How did the designer fit in with the spirit of the times : How did the designer fit in with the "Spirit of the Times"? Muses that inspired or reflected the style of the chosen designer/brand/fashion house.

Discuss the purpose of operating systems : Discuss the purpose of operating systems and Describe the components that comprise operating systems and the functions of each of these components

Percent return on its investments : Assume that the relevant tax rate is 34 percent. If the No-shoplift Security Company requires a 10 percent return on its investments, what price should it bid?

Nmap application and how it can be used : Write a one papge paper APA FORMAT about NMAP application and how it can be used to find vulnerabilities

Create a website that enables interactivity : Create a website from scratch that enables interactivity between a user and the organization. The website is meant for a museum.

Traditional project management : Frederick Brooks has defended and refined NSB since 1986, and the asserts that one point proved to be correct

Write an essay on womens suffrage movement : Write an essay on Women's Suffrage Movement.

User Account

All Pages