Consider a project to supply 109 million postage stamps per year to the U.S. Postal Service for the next five years. You have an idle parcel of land available that cost $1,750,000 five years ago; if the land were sold today, it would net you $1,825,000 aftertax. The land can be sold for $1,757,000 after taxes in five years. You will need to install $5.8 million in new manufacturing plant and equipment to actually produce the stamps; this plant and equipment will be depreciated straight-line to zero over the project's five-year life. The equipment can be sold for $760,000 at the end of the project. You will also need $620,000 in initial net working capital for the project, and an additional investment of $59,000 in every year thereafter. Your production costs are.57 cents per stamp, and you have fixed costs of $1,140,000 per year. If your tax rate is 25 percent and your required return on this project is 11 percent, what bid price should you submit on the contract? (Do not round Intermediate calculations and round your answer to 5 decimal places, e.g., 32.16161.) Bid price Martin Enterprises needs someone to supply it with 118,000 cartons of machine screws per year to support its manufacturing needs over the next five years, and you've decided to bid on the contract. It will cost you $785,000 to install the equipment necessary to start production; you'll depreciate this cost straight-line to zero over the project's life. You estimate that, in five years, this equipment can be salvaged for $133,000. Your fixed production costs will be $415,000 per year, and your variable production costs should be $10.05 per carton. You also need an initial investment in net working capital of $68,000. If your tax rate is 24 percent and you require a return of 12 percent on your investment, what bid price should you submit? (Do not round Intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) es Bid price