The Army has requested bids for multiple use digitizing devices (MUDDs)

The Army has requested bids for multiple use digitizing devices (MUDDs).The Bid is for 4 units per year for 3 years.Labor and materials are estimated at $ 10,000 per unit.Production space will be leased for $12,000 per year.The project will require purchase of $50,000 in Fixed Assets which will be depreciated straight line over 3 years. Salvage value $10,000 @ Yr 3.The project will require and initial investment of $10,000 in NWC; $ 5,000 of which will be recovered at the end of year 3.Applicable tax rate is 34%; and the required rate of return is 15%.What per unit price should the company bid on this project?

Order your essay today and save 30% with the discount code: KIWI20