I have seen several "expert answers" to this, but none take into account the returned value from NWC$,$ after tax salvage of the equipment, opportunity cost of the land, etc. I$\text{'}$m trying hard to understand all of this, but getting the OCF without revenue is really throwing me for a loop. I just need some guidance in how to best set this up$.$

Consider a project to supply $106$ million Pokemon trading cards per year for the next five

year to the Pokemon$-$R$-$Us Corporations. You have some undeveloped land available

that cost $$1,960,000$ five years ago. If you sold the land today you would net $$2,160,000$

after taxes. You anticipate that the land can be sold in five years for $$2,360,000$ net of

taxes.

To supply the trading cards you will need to install $$5\mathrm{.}46$ million in new plant and

equipment. These fixed assets will be depreciated straight$-$line to zero over the project's

five$-$year life. The plant and equipment will be sold for $$560,000$ before taxes at the end

of five years.

You anticipate an initial investment in net working capital of $$660,000,$ and an additional

$$56,000$ in each subsequent year. You estimate that all net working capital will be

recovered at the end of the project. Your variable production costs are $0\mathrm{.}56$ cents per

card $($or $$0\mathrm{.}0056),$ and you have fixed costs of $$1,080,000$ per year. Your tax rate is $34$

percent and your required return on this project is $12$ percent.

What is the lowest that your bid price per card should be$?$ That is$,$ what per$-$unit price

gives the project an NPV $=0?$

Part A: Start by calculating the operating cash flow that, when received as an annuity for

$5$ years, would set the NPV $=0.($Do not round intermediate calculations and round

your answer to $2$ decimal places, e$.$g$.,32\mathrm{.}16.)$

$OC{F}^{*}$$

Part B: Now calculate the minimum bid price. $($Do not round intermediate calculations

and round your answer to $4$ decimal places, e$.$g$.,32\mathrm{.}1616.)$

Bid price