Last month your company posted $$100,000$ with Contracts$-$R$-$Us to get approved to bid on contracts via their website. Trump Enterprises is looking for a supplier of red baseball caps, and your boss wants you to bid on the contract. The company requires $130,000$ baseball caps per year over the next five years. You estimate that the necessary equipment will cost $$970,000,$ and the equipment will be depreciated straight$-$line to zero over the project's life. You believe this equipment can be sold for $$80,000$ at the end of the project.

You further estimate the fixed costs to be $$335,000$ per year, and the variable production costs to be $$11\mathrm{.}30$ per hat. You'll need an initial investment in net working capital of $$85,000,$ but this will be recovered at the end of the project. Your tax rate is $30$ percent and you require a return of $11$ percent on your investment.

What is the lowest bid price $($per unit$)$ you should submit $($i$.$e$.$ price where 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$.,32\mathrm{.}16.)$

Part B: Now calculate the bid price. $($Do not round intermediate calculations and round your answer to $2$ decimal places, e$.$g$.,32\mathrm{.}16.)$

Bid price