Lansing distributors, inc., a company that distributes a range of household products from manufacturers to retailers, was negotiating a new contract with its union employees who worked in the company's warehouses and drove its trucks. union reps and management were both willing to negotiate on 20 points, but the union wanted to discuss two additional points that lansing management did not want to make part of the employee contract. in this situation, the company considered the bargaining comprised 20 options.

You are working on a bid to build two city parks a year for the next three years. this project requires the purchase of $249,000 of equipment that will be depreciated using straight-line depreciation to a zero book value over the three-year project life. ignore bonus depreciation. the equipment can be sold at the end of the project for $115,000. you will also need $18.000 in net working capital for the duration of the project. the fixed costs will be $37000 a year and the variable costs will be $148,000 per park. your required rate of return is 14 percent and your tax rate is 21 percent. what is the minimal amount you should bid per park? (round your answer to the nearest $100) (a) $214,300 (b) $214,100 (c) $212,500 (d) $208,200 (e) $208,400