Cullumber Shovel Corporation has decided to bid for a contract to supply shovels to the Honduran Army. The Honduran Army intends

to buy $1,000$ shovels per year for the next $3$ years. To supply these shovels, Cullumber will have to acquire manufacturing equipment at

a cost of $$148,000.$ This equipment will be depreciated on a straight$-$line basis over its five$-$year lifetime. At the end of the third year,

Cullumber can sell the equipment for exactly its book value $($$$59,200).$ Additional fixed costs will be $$40,000$ per year, and variable

costs will be $$2$ per shovel. An additional investment of $$25,000$ in net working capital will be required when the project is initiated.

This investment will be recovered at the end of the third year. Cullumber Shovel has a $27$ percent marginal tax rate and a $17$ percent

required rate of return on the project. What is the lowest possible per shovel price that Cullumber can offer for the contract and still

create value for its stockholders? $($Round Round CF Opns answer to $0$ decimal places, e$.$g$.5,275$ and final answer to $2$ decimal places, e$.$g$.$

$15\mathrm{.}25.)$

What is the shovel price?