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Sam's Enterprises needs someone to supply it with 9 0 , 0 0 0 cartons of machine screws per year to support its manufacturing needs

Sam's Enterprises needs someone to supply it with 90,000 cartons of machine screws per year to support its manufacturing needs over the next five years, and you've decided to bid on the contract, It will cost you 5800,000 to install the equipment necessary to start production. The equipment will be depreciated at $143,713.13 per year, and you estimate that it can be salvaged for $60,000 at the end of the five-year contract. Your fixed production costs will be $400,000 annually, and your variable production costs should be $200 per carton. You also need an initial net working capital of $70,000. If your tax rate is 30% and you require a 10% return on your investment, what bid price should you submit?

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