PriceCut Pharmacy Ltd. has asked your firm to provide a quote to supply vitamin supplements for the next 4 years. You are toldthe annual requirement will be 80,000 bottles of the product. You estimate that initial investment in equipmentto manufacture the product is$698,000. Tax Office rules permit deprecaition of the equipment to zero book value over the life of the project using straight line method. The equipmentcan be sold for $149,000 at the end of the project. Annual expenses to produce PriceCut's requirement will be $312,000. Initial investment in net working capital is estimated at$56,000 which will be recovered at the end of the project.Your company pays tax at 34percentand discount rate is18percent. What is the minmum price per bottle that you will quote?

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