COnsider a project to supply 100 million postage stamps per yearto canada post f

COnsider a project to supply 100 million postage stamps per yearto canada post for the next 5 years. You have an idle parcelof land available that cost $1000000 five years ago; if you soldthe land today it would net you $1500000 after tax. If yousold the land five years from now the land can be sold again for$1500000 after tax. You will need to install $3800000 in newmanufacturing plant and equip to actually produce stamps; thisplant and equipment will be depreciated straight-line to zero overthe projects five year life. The equipment can be sold for$680000 at the end of the project. You will need $500000 ininitial net working capital for the project and an additional$50000 every year thereafter. Your production costs are $0.5cents per stamp and you have fixed costs of $90000 peryear. If he tax rate is 34 percent and your required returnon the project is 12 percent what bid price should you submit onthe contract?