A company will submit a bid for the price per year it would charge to a new development for the next five years.

The company would have to buy new equipment for $110,000. The equipment would be depreciated straight-line to its estimated salvage value of $10,000 over its five-year useful life. At the end of the project, the company will be able to sell its equipment for $10,000. Also the company would use 3 trucks it currently has, which it could sell now for $50,000. These trucks are already fully depreciated, and will likely be sold in 5 years for a $10,000.

Working capital will increase by $30,000 to begin the project, and increase by an additional $10,000 in Year 1.

Total labor and other costs would be $80,000 a year. The tax rate is 25% percent and cost of capital is 10 percent.

What the minimum bid price per year need to be if the company wants to wind the bid and at least cover its cost of capital?