Dahlia Enterprises needs someone to supply it with 129,000 cartons of machine screws per year to support its manufacturing needs over the next five years, and youve decided to bid on the contract. It will cost you $960,000 to install the equipment necessary to start production; youll depreciate this cost straight-line to zero over the projects life. You estimate that in five years, this equipment can be salvaged for $79,000. Your fixed production costs will be $334,000 per year, and your variable production costs should be $11.20 per carton. You also need an initial investment in net working capital of $84,000. If your tax rate is 35 percent and your required return is 12 percent on your investment, what bid price should you submit? (Do not round intermediate calculations and round your final answer to 2 decimal places. (e.g., 32.16))

Bid price

$

Lang Industrial Systems Company (LISC) is trying to decide between two different conveyor belt systems. System A costs $260,000, has a four-year life, and requires $80,000 in pretax annual operating costs. System B costs $366,000, has a six-year life, and requires $74,000 in pretax annual operating costs. Both systems are to be depreciated straight-line to zero over their lives and will have zero salvage value. Whichever project is chosen, it will not be replaced when it wears out. The tax rate is 30 percent and the discount rate is 9 percent.

Calculate the NPV for both conveyor belt systems. (Negative amounts should be indicated by a minus sign. Round your answers to 2 decimal places. (e.g., 32.16))

	NPV
System A	$
System B	$