They are two different questions.

Consider a project to supply 91 million postage stamps per year to the U.S. Postal Service for the next five years. You have an idle parcel of land available that cost $1,660,000 five years ago; if the land were sold today, it would net you $1,735,000 aftertax. The land can be sold for $1,739,000 after taxes in five years. You will need to install $4.9 million in new manufacturing plant and equipment to actually produce the stamps; this plant and equipment will be depreciated straight-line to zero over the project's five-year life. The equipment can be sold for $490,000 at the end of the project. You will also need $530,000 in initial net working capital for the project, and an additional investment of $41,000 in every year thereafter. Your production costs are .39 cents per stamp, and you have fixed costs of $960,000 per year. If your tax rate is 22 percent and your required return on this project is 9 percent, what bid price should you submit on the contract? (Do not round intermediate calculations and round your answer to 5 decimal places, e.g., 32.16161.) Answer is complete but not entirely correct. Bid price 0.41766 Novt 6 of 26 Aria Acoustics, Inc. (AAl), projects unit sales for a new seven-octave voice emulation implant as follows: Year Unit Sales 73,400 86,400 105,500 97,600 67,500 4 Production of the implants will require $1,600,000 in net working capital to start and additional net working capital investments each year equal to 15 percent of the projected sales increase for the following year. Total fixed costs are variable production costs are $257 per unit, and the units are priced at $381 each. The equipment needed to begin production has an installed cost of $16,900,000. Because the implants are intended for professional singers, this equipment is considered industrial machinery and thus qualifies as equipment can be sold for about 20 percent of its acquisition cost. The tax rate is 22 percent the required return is 14 percent. MACRS schedule $3,400,000 per year, seven-year MACRS property. In five years, this a. What is the NPV of the project? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) b. What is the IRR? (Do not round intermediate calculations and enter your answer as Next 12 of 25