Ayer furniture purchased land, paying $ 65 comma 000 cash and signing a $ 330 comma 000 note payable. in addition, ayer paid delinquent property tax of $ 2 comma 500, title insurance costing $ 6 comma 000, and $ 5 comma 000 to level the land and remove an unwanted building. the company then constructed an office building at a cost of $ 650 comma 000. it also paid $ 48 comma 000 for a fence around the property, $ 15 comma 000 for a sign near the entrance, and $ 10 comma 000 for special lighting of the grounds. determine the cost of the land, land improvements, and building. the cost of the land is $ .

Oakmont company has an opportunity to manufacture and sell a new product for a four-year period. the company’s discount rate is 18%. after careful study, oakmont estimated the following costs and revenues for the new product: cost of equipment needed $ 230,000 working capital needed $ 84,000 overhaul of the equipment in year two $ 9,000 salvage value of the equipment in four years $ 12,000 annual revenues and costs: sales revenues $ 400,000 variable expenses $ 195,000 fixed out-of-pocket operating costs $ 85,000 when the project concludes in four years the working capital will be released for investment elsewhere within the company. click here to view exhibit 12b-1 and exhibit 12b-2, to determine the appropriate discount factor(s) using tables.

Dahlia enterprises needs someone to supply it with 127,000 cartons of machine screws per year to support its manufacturing needs over the next five years, and you’ve decided to bid on the contract. it will cost you $940,000 to install the equipment necessary to start production; you’ll depreciate this cost straight-line to zero over the project’s life. you estimate that in five years, this equipment can be salvaged for $77,000. your fixed production costs will be $332,000 per year, and your variable production costs should be $11.00 per carton. you also need an initial investment in net working capital of $82,000. if your tax rate is 30 percent and your required return is 11 percent on your investment, what bid price should you submit? (do not round intermediate calculations and round your final answer to 2 decimal places. (e.g., 32.16))

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