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Q You want to bid on a project to supply 80 million postage stamps to Canada Post for the next five years. You will need

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Q You want to bid on a project to supply 80 million postage stamps to Canada Post for the next five years. You will need to install $3.1 million in new manufacturing plant and equipment to actually produce the stampa, which will be depreciated at a 20%CCA rate. The equipment can be sold for a $600,000 at the end of the project. You will also need an initial 5600,000 in NWC plus an additional investment of $50,000 per year for the next 4 years thereafter all of which will be recovered at the end of the project Your production costs are 0.75 cents per stamp and you have fixed costs of $800,000 per year. If your tax rate is 34% and your required rate of return is 15% what bid price per stamp should you submit? TO 19 Round your answer to the nearest dollar, no dollar sign, Firs

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