Consider a project to supply 112,000,000 postage stamps per year to the U. Postal Service for the next 5 years.

Consider a project to supply 112,000,000 postage stamps per year to the U.S. Postal Service for the next 5 years. You have an idle parcel of land available that cost $1,400,000 five years ago; if the land were sold today, it would net you $1,680,000 aftertax. The land can be sold for $1,500,000 after taxes in five years. You will need to install $4,340,000 in new manufacturing plant and equipment to actually produce the stamps; this plant and equipment will be depreciated straight-line to zero over the project's 5-year life. The equipment can be sold for $840,000 at the end of the project. You will also need $899,000 in initial net working capital for the project, and an additional investment of $70,000 in every year thereafter. Your production costs are 0.7 cents per stamp, and you have fixed costs of $1,120,000 per year. If your tax rate is 31 percent and your required return on this project is 15 percent, you should submit a bid price of ????? Its not 176327061.69