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What is the bid price? • Need to produce 5 modified trucks per year for 4...

What is the bid price?
• Need to produce 5 modified trucks per year for 4 years
• We can buy the truck platforms for $10,000 each
• Facilities will be leased for $24,000 per year
• Labour and material costs are $4,000 per truck
• Need $60,000 investment in new equipment, depreciated at 20% (CCA class 8)
• Expect to sell equipment for $5,000 at the end of 4 years
• Need $40,000 in net working capital
• Tax rate is 43.5%
• Required return is 20%

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