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u are working on a bld to bulld two city parks a year for the next three years. This project requires the purchase of $249,000 of equipment that will be depreclated using stralght-line epreciation to a zero book value over the three-year project life. Ignore bonus depreciation. The equipment can be sold at the end of the prolect for $115,000, You will also need $18.000 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 pur tax rate is 21 percent. What Is the minimal amount you should bid per park? (Round your answer to the nearest $100) Multiple Cholce $212,500 $214.300

u are working on a bld to bulld two city parks a year for the next three years. This project requires the purchase of $249,000 of equipment that will be depreclated using stralght-line epreciation to a zero book value over the three-year project life. Ignore bonus depreciation. The equipment can be sold at the end of the prolect for $115,000, You will also need $18.000 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 pur tax rate is 21 percent. What Is the minimal amount you should bid per park? (Round your answer to the nearest $100) Multiple Cholce $212,500 $214.300

Advanced Engineering Mathematics
Advanced Engineering Mathematics
10th Edition
ISBN:9780470458365
Author:Erwin Kreyszig
Publisher:Erwin Kreyszig
Chapter2: Second-order Linear Odes
Section: Chapter Questions
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Certainly! Below is a transcription of the content suitable for an educational website: --- ### Project Bid Calculation for City Parks 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 $8,000 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? (Round your answer to the nearest $100) #### Multiple Choice: - $212,500 - $214,300 - $208,400 - $214,100 - $208,200 --- This exercise involves determining the minimal bid price per park, considering factors such as equipment costs, depreciation, sales, and cost of capital. Analyze and calculate to select the correct bidding amount from the choices provided.
Transcribed Image Text:Certainly! Below is a transcription of the content suitable for an educational website: --- ### Project Bid Calculation for City Parks 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 $8,000 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? (Round your answer to the nearest $100) #### Multiple Choice: - $212,500 - $214,300 - $208,400 - $214,100 - $208,200 --- This exercise involves determining the minimal bid price per park, considering factors such as equipment costs, depreciation, sales, and cost of capital. Analyze and calculate to select the correct bidding amount from the choices provided.
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