The Bits'n Bytes Computer Company Has Been Requested by a Large

question 65

Multiple Choice

The Bits'n Bytes Computer Company has been requested by a large brokerage firm to submit a bid for a new computer system.The system would be installed in 20 branch offices per year for the next three years.Bits'n Bytes would need to purchase $250,000 worth of specialized equipment.The CCA rate would be 25 percent.Bits'n Bytes will be able to sell the equipment in three years for $125,000.Labour and material costs would be $35,000 per site.The company would need to invest $60,000 in net working capital.The relevant tax rate is 44 percent.Assume the asset class remains open after the asset is sold.If Bits'n Bytes requires a 16% return on investment,their minimum bid (price per system) should be:

• A) $22,950.93
• B) $38,350.93
• C) $40,983.80
• D) $68,483.80

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Definitions:

1831 Slave Rebellion

The Nat Turner Rebellion, a slave revolt in Virginia that resulted in the deaths of many, prompting stricter slave laws in the Southern states.

White Southern Families

Refers to families living in the Southern states of the USA, traditionally known for their unique cultural, social, and sometimes economic practices, shaped significantly by the historical context of slavery and segregation.

White Women

Women identified or classified as white, typically based on their ancestry or appearance, without necessarily implying uniform cultural, social, or political identities.