problem: Your firm is thinking about making a bid to sell 185,000 cartons of machine screws per year over the next five years to a manufacturer that uses the screws in its production process. It will cost your firm dollar 940,000 to install the equipment necessary to start production of the screws, and the cost of that equipment will be depreciated [to zero] on a straight-line basis over the life of the project. It is estimated that the equipment can be salvaged at the end of five year for dollar 70,000. Your fixed production costs will be dollar 305,000 each year, and your variable production costs should be dollar 9.25 per carton. You will also need an initial investment in net working capital of dollar 75,000 (to be returned at the end of the project). If your tax rate is 35% and you require a 12% return on your investment, what bid price should you submit?