Your company has been approached to bid on a contract to sell 3,900 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 Due to technological improvements, beyond that time they will be outdated and no sales will be possible.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 $3.5 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 $92,000 to be returned at the end of the project, and the equipment can be sold for $272,000 at the end of production. Fixed costs are $637,000 per year, and variable costs are $152 per unit. In addition to the contract, you feel your company can sell 9,200, 10,100, 12,200, and 9,500 additional units to companies in other countries over the next four years, respectively, at a price of $295. This price is fixed. The tax rate is 30 percent, and the required return is 11 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.)

You are evaluating two different silicon wafer milling machines. The Techron I costs $258,000, has a three-year life, and has pretax operating costs of $46,800 per year. The Techron Il costs $350,000, has a five-year life, and has pretax operating costs of $54,900 per year. For both milling machines, use straight-line depreciation to zero over the project's life and assume a salvage value of $29,000. Assume the tax rate is 40 percent and the discount rate is 12 percent. Requirement 1: Compute the EAC for both the machines. (Do not include the dollar signs ($). Negative amounts should be indicated by a minus sign. Round your answers to 2 decimal places. (e.g., 32.16)) Techroni Techron 11 EAC $ $ Requirement 2: Which machine would you prefer? Techron 11 You are evaluating two different silicon wafer milling machines. The Techron I costs $258,000, has a three-year life, and has pretax operating costs of $46,800 per year. The Techron Il costs $350,000, has a five-year life, and has pretax operating costs of $54,900 per year. For both milling machines, use straight-line depreciation to zero over the project's life and assume a salvage value of $29,000. Assume the tax rate is 40 percent and the discount rate is 12 percent. Requirement 1: Compute the EAC for both the machines. (Do not include the dollar signs ($). Negative amounts should be indicated by a minus sign. Round your answers to 2 decimal places. (e.g., 32.16)) Techroni Techron 11 EAC $ $ Requirement 2: Which machine would you prefer? Techron 11