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Cracker Baker uses specialized ovens to bake its bread. One oven costs $698,000 with a 4 year life and incurs pretax operating costs of $81,000 per year. The oven requires Initial net working capital investment of $62,000, which will be fully recovered at the end of the project. In addition, the oven follows a straight-line depreciation and will be fully depreciated with the expected salvage value of zero. Under the tax rate of 30%, find the equivalent annual cost of an oven with 13% required rate of return O a $202,637.80 Ob -$211,873.55 Oc. -$247,073.55 Od. -$249,322.80 Oe. None of above Water Supplier Inc. is working on a bid to build two water tanks for the city of Elon a year for the next three years. This project requires the purchase of $185,000 of equipment that will be depreciated using straight-line depreciation to a zero book value over the 3-year project life, The equipment will be worthless at the end of the project with zero salvage value. You will also need $20,000 in net working capital for the duration of the project. The fixed costs will be $18,000 a year and the variable costs will be $168,000 per tank. Your required rate of return is 15 percent and your tax rate is 34 percent. What is the minimal amount you should bid per tank? a $219,876,42 Ob. $224,772.02 Oc. $232,280.26 d. $242,295.34 O $242,495.34

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