Which of the following is not true? a. large-scale it outsourcing involves transferring specific assets to a vendor. b. specific assets are of value to vendors because, once acquired, vendors can achieve economies of scale by employing them with other clients. c. once an organization outsources its specific assets, it may not be able to return to its pre-outsource state. d. specific assets, while valuable to the client, are of little value to the vendor.

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))