A firm is trying to determine how much they can bid for a new truck. The truck will have a useful life of 5 years and will be straight-line depreciated to zero. The truck will bring in incremental revenue of $10,303.00 per year, and will cost $4,015.00 per year to operate. The firm expects to be able to sell the truck for $4,882.00 at the end of the fifth year. The tax rate facing the firm is 40.00% and the required return is 13.00%.

How much can the firm afford to bid for the truck and break even?