You are working on a bid to build four cabins a year for the next three years for a local campground. this project requires the purchase of $66,000 of equipment which will be depreciated using straight-line depreciation to a zero book value over the three years. the equipment can be sold at the end of the project for $10,000. you will also need $16,000 in net working capital over the life of the project. the fixed costs will be $18,000 a year and the variable costs will be $88,000 per cabin. your required rate of return is 14 percent for this project and your tax rate is 34 percent. what is the minimal amount, rounded to the nearest $500, that you should bid per cabin?

Self-interest achieve society’s economic goals because producers know which goods consumers want the most. as consumers and producers exercise their freedom to act in their own self-interest, markets will produce the desired goods at the lowest possible cost. consumers and producers both operate based on society’s economic goals. consumers know which goods can be produced at the lowest cost. there is a wide variety of desired goods and services in a market system because producers determine what to produce. consumers change their minds frequently. there is always a need to produce something new and improved. individual wants are diverse. what is produced is ultimately determined by consumers, because if the goods offered are not what consumers want, consumers will not buy them. producers, because they are driven by profits. producers, because they determine what to produce. consumers, because they participate in marketing surveys.