Singapore Army SAF Procurement Ltd is seeking to place a bid on an Advance Warfare Digital Device (AWDD).

The contract requires the vendor to deliver 5 units of AWDD per year for a duration of 3 years.

The labour and material costs run at $10,000 per AWDD, while production space can be leased for $12,000 per year.

The project requires $50,000 in new equipment which will have a resale value of $10,000 after 3 years.

Straight-line depreciation to a value of zero is used.

Making AWDD requires a $10,000 increase in net working capital. Assume a 30% tax rate and a required return of 15%.

Singapore Army SAF Procurement Ltd submits a bid price of $17,000 per unit.

Determine whether the vendor would accept the project or not.