5. Consider a project to supply 100 million postage stamps per year to the U.S. Postal Service forthe next five years. You have an idle parcel of land available that cost $850,000 five years ago; ifthe land were sold today, it would net you $1,080,000 aftertax. The land can be sold for$1,150,000 after taxes in five years. You will need to install $4.6 million in new manufacturingplant and equipment to actually produce the stamps; this plant and equipment will be depreciatedstraight-line to zero over the projects five-year life. The equipment can be sold for $400,000 atthe end of the project. You will also need $600,000 in initial net working capital for the project,and an additional investment of $50,000 in every year thereafter. You production costs are 0.45cents per stamp, and you have fixed costs of $1,200,000 per year. If your tax rate is 34 percentand your required return on this project is 12 percent, what bid price should you submit on thecontract?