Consider a project to supply 100 million postage stamps per year to Canada Post for the next five years. You have an idle parcel of land available that cost $850,000 five years ago; if you sold the land today, it would net you $1,080,000 after tax. If you sold the land five years from now, the land can be sold again for a net $1,150,000 after tax. You will need to install $4.6 million in new manufacturing plant and equipment to actually produce the stamps. The equipment qualifies for a CCA rate of 30% and can be sold for $400,000 at the 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 every year thereafter. Your production costs are 0.45 cents per stamp, and you have fixed costs of $1,200,000 per year. If your tax rate is 34% and your required return on this project is 12%, what bid price should you submit on the contract? (Enter your answer in dollars. Do not round intermediate calculations. Round the final answer to 5 decimal places. Omit $ sign in your response.)

Bid price $