A Proposed Project Will Require $410,000 in Fixed Assets That

Multiple Choice

A proposed project will require $410,000 in fixed assets that would be depreciated straight-line to zero over the 3-year life of the project.These assets have an expected aftertax salvage value of $110,000 at the end of the project. The project would require $48,000 of net working capital,all of which is recoverable,along with $220,000 in annual expenses.What is the minimum annual price you should bid on this project if you require a rate of return of 17 percent and have a tax rate of 30 percent?

A) $410,208
B) $393,760
C) $408,211
D) $427,009
E) $367,984