1. Arlene Propane, a provider of propane and propane accessories is bidding on a contract to install propane pumps and lines at 25 locations throughout Arlene township. The senior manager Mr. Hill anticipates that they will need to purchase $425,000 worth of equipment up front which will be depreciated at 30% for five years after which it can be salvaged for $185,000. Variable costs per installation are expected to be $62,500 per site. In addition to this they will be required to invest $100,000 in net working capital which they will recover at the end. 
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4. The tax rate is 35% and the cost of capital is 15%. If the asset class remains open at the end of the project (ie the CCATS method may be used) What is the minimum bid price per site?