Your Enterprise needs someone to supply it with $175,000$ cartons

of machine screws per year to support its manufacturing needs over

the next five years.$$ It will cost you $$570,000$ to purchase

and install the equipment necessary to start production.$$ The

equipment will be depreciated at a $30\%$ CCA rate and it should have

a salvage value of $$77,000$ at the end of the five$-$year

contract.$$ Your fixed production costs will be $$182,000$ per

year and your variable production costs are estimated at $$6\mathrm{.}25$ per

carton.$$ You also need an initial net working capital of

$$75,000,$ which will be recovered at the end of the project.$$

If your tax rate is $37\%$ and you want a $20\%$ return on your

investment, what is an appropriate bid price?

Round your answer to the nearest dollar, no dollar sign.

Answer