Your Company Wants to Bid on the Sale of 10

question 335

Multiple Choice

Your company wants to bid on the sale of 10 customized machines per year for five years. The initial costs for the project are $1.6 million with a salvage value of $800,000 after five years. The manufacturing equipment belongs in a 30% CCA class. Annual fixed costs are estimated at $700,001. Variable cost per machine is $81,501. The project requires net working capital of $120,001. The company has a 34% tax rate and desires a 15% return on the project. What is the minimum price that the company should bid per single machine?

• A) $197,320
• B) $212,028
• C) $219,887
• D) $221,009
• E) $223,619

---

Definitions:

Psychological Perspective

A viewpoint in psychology that emphasizes understanding human behavior by examining mental functions and processes.

Emotional Reactions

Responses characterized by intense feelings that occur in reaction to an external stimulus or internal thought process.

Sexual Motivation

A drive that influences humans to engage in behaviors related to physical attraction and reproduction.

Free Will

The concept of being able to make choices that are not predetermined by past events, often discussed in philosophy and psychology.