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Your company has been approached to bid on a contract to sell 4 , 8 5 0 voice recognition ( VR ) computer keyboards a

Your company has been approached to bid on a contract to sell 4,850 voice recognition (VR) computer keyboards a year for four years. Due to technological improvements, beyond that time they will be outdated and no sales will be possible. The equipment necessary for the production will cost $3.2 million and will be depreciated on a straight-line basis to a zero salvage value. Production will require an investment in net working capital of $400,000 which will be returned at the end of the project, and the equipment can be sold for $315,000 at the end of production. Fixed costs are $575,000 per year, and variable costs are $76 per unit. In addition to the contract, you feel your company can sell 11,600,13,700,18,000, and 10,500 additional units to companies in other countries over the next four years, respectively, at a price of $172. This price is fixed. The tax rate is 21 percent, and the required return is 9 percent. Additionally, the president of the company will undertake the project only if it has an NPV of $100,000. What bid price should you set for the contract? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g.,32.16.)

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