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study guide question 1 answer below » You are working on a bid to build two city parks a year for the next three years. This project requires the purchase of
$180,000 of equipment that will be depreciated using straight-line depreciation to a zero book value over the 3-year project life. The equipment can be sold at
the end of the project for $34,000. You will also need $20,000 in net working capital for the duration of the project. The fixed costs will be $16,000 a year
and the variable costs will be $168,000 per park. Your required rate of return is 15 percent and your tax rate is 40 percent. What is the minimal amount you View complete 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
$180,000 of equipment that will be depreciated using straight-line depreciation to a zero book value over the 3-year project life. The equipment can be sold at
the end of the project for $34,000. You will also need $20,000 in net working capital for the duration of the project. The fixed costs will be $16,000 a year
and the variable costs will be $168,000 per park. Your required rate of return is 15 percent and your tax rate is 40 percent. What is the minimal amount you
should bid per park? Please include a detailed description along with the answer. Thanks! View less » Jan 17 2014 11:57 PM