1. Your company is going to bid on a project to provide new Humber Hoodies. The project details include:
   • 4-year project.
   • Initial investment of $25,000 in working capital.
   • Upfront costs of $100,000 for new material cutting & digital printing equipment. At the end of 4 years, you can sell the equipment for $25,000. The equipment falls into the 20% CCA class.
   • There will be $25,000 in yearly pre-tax operating costs to run the equipment.
   • Your company has a tax rate of 40% and a required rate of return is 10%

1. (9 marks) Complete the following table and calculate the net present value for this contracts costs.
2. (3 marks) What is this contracts EAC?
3. (3 marks) If Humber wants 6000 hoodies over the 4 years (1500 per year), what is the minimum you might bid per hoodie to try and win this contract?

Cash Flows	Year
	PV		0		1		2		3		4
PVCCATS
NPV

Show your work here

a)

b)

c)