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You are a subcontractor bidding on a contract to provide car batteries to be sold at WalMart stores throughout Ohio for three years. You wish

You are a subcontractor bidding on a contract to provide car batteries to be sold at WalMart stores throughout Ohio for three years. You wish to enter a bid price that makes your NPV exactly $0. You have completed Steps 1-3 of the process explained at the end of the Chapter 11 slides and you find that you need to generate an annual OCF of $275,587.20 to get exactly NPV=0. Solve for the price per battery that you need to charge using the following information:
Quantity: 11,226 batteries per year
Variable costs: $37 per battery
Fixed costs: $585,000 per year
Tax rate: 21%
Depreciation: $200,000 per year
Enter your answer in dollars and cents.

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