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You have the opportunity to bid on a project that involves manufacturing 110,000 units per year for 4 years. The project will require $698,000 in

You have the opportunity to bid on a project that involves manufacturing 110,000 units per year for 4 years. The project will require $698,000 in fixed assets that would be depreciated straight-line to zero over the project's life. These assets have an expected pretax salvage value of $149,000 at the end of the project. The project would require $56,000 of net working capital, all of which is recoverable, along with $312,000 in annual expenses. What is the minimum price per unit you should bid on this project if you require a rate of return of 18 percent and have a tax rate of 34 percent?

A)$6.0184

B)$4.9272

C)$5.4723

D)$5.3133

E)$5.7040

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