What is the minimal amount you should bid per park

Assignment Help Financial Accounting
Reference no: EM132767048

Question - You are working on a bid to build two city parks a year for the next three years. This project requires the purchase of $249,000 of equipment that will be depreciated using straight-line depreciation to a zero book value over the three-year project life. Ignore bonus depreciation. The equipment can be sold at the end of the project for $115,000. You will also need $18,000 in net working capital for the duration of the project. The fixed costs will be $37,000 a year and the variable costs will be $148,000 per park. Your required rate of return is 14 percent and your tax rate is 21 percent. What is the minimal amount you should bid per park?

Reference no: EM132767048

Questions Cloud

Calculate charleston current contribution margin per unit : Fixed costs in the forecasted income statement are $13,500 in manufacturing and $2,700 in selling. Calculate Charleston current contribution margin per unit
Analysis of various tools useful in policy making : Chapter 7 presents a comparative analysis of various tools useful in policy making.
Employees from diverse cultural and social backgrounds : Research at least one piece of legislation which might impact on the way you communicate with employees from diverse cultural and social backgrounds and/or with
What factors are considered in categorizing sme : SME is defined by every country as per their developments so how US, UK Pakistan and India define SME, what factors are considered in categorizing SME? Explain
What is the minimal amount you should bid per park : Your required rate of return is 14 percent and your tax rate is 21 percent. What is the minimal amount you should bid per park
What the process would be taken for a bank reconciliation : Modern Solar from Southpac Bank. What the steps and process would be taken for a bank reconciliation for Modern Solar as at 31 December 2020?
Create the journal entry to record the acquisition of bond : On January 1, 2017, Braun Limited has purchased a $1,000,000, 10%, Prepare the journal entry to record the acquisition of the bond on January 1, 2017.
Establish to safeguard organisation financial resources : As a manager, what control measures do you need to establish to safeguard organisation's financial resources in accordance with legislative and organisational r
Prepare all of journal entries to account for investment : The bond continues to be designated FV-NI. At December 31, 2018, the bond has amortized, Prepare all of 2019 journal entries to account for this investment.

Reviews

Write a Review

Financial Accounting Questions & Answers

  Financial statement analysis and preparation

Financial Statement Analysis and Preparation

  Shareholder of a company

Describe the ways that a person can become a shareholder of a company. Why Wal-Mart would split its stock?

  Financial and accounting principles

An understanding of financial and accounting principles can be a valuable tool for managers. While not all managers will find themselves calculating financial ratios or preparing annual financial data.

  Prepare a statement of cash flow using the direct method

Prepare a Statement of Cash Flow using the Direct Method and Prepare the Operations section of the Statement of Cash Flow using the Indirect Method.

  Financial accounting assignment

This assignment has one case study and two question apart from case study. Questions related to document Liquidation question and Company financial statements question - Torquay Limited

  Prepare general journal entries for goela

Prepare general journal entries for Goela Ltd

  Principles of financial accounting

Prepare the journal entry to record the acquisition of the assets.

  Prepare general journal entries to record the transactions

Prepare general journal entries to record the transactions, assuming use of the periodic inventory system

  Global reporting initiative

Compare the view espoused by the economist Milton Friedman about the social responsibilities of business with the views express by Stigler.

  Explain the iasb conceptual frameworks

Explain the IASB Conceptual Framework's perspective of users and their decisions.

  Determine the company''s financial statements

T he focus of the report is to determine the extent to which you are comfortable relying on the financial statements as presented by management .

  Computation of free cash flow

Computation of Free Cash Flow

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