2-25 Notes BF

2-25 Notes BF - o Require initial $10,000 increase in NWC o...

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2/25/08 Business Finance Notes Example: setting a bid price o Requested bid for 4 units for 3 years o Labor and materials: $10,000/ unit o Production Space leased for $12,000 per year o $50,000 in fixed assets w/ $10,000 salvage
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Unformatted text preview: o Require initial $10,000 increase in NWC o Tax rate = 34% o Required return = 15% o (see Bidding example) Essentially, what value of X will result in NPV = 0?...
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