You have the opportunity to bid on a project that involves manufacturing 110,000 units per year for four years

You have the opportunity to bid on a project that involves manufacturing 110,000 units per year for four years. The project will require $698,000 in fixed assets that would be depreciated straight-line to zero over the project's life. These assets have an expected pretax salvage value of $149,000 at the end of the project. The project would require $56,000 of net working capital, all of which is recoverable, along with $312,000 in annual expenses. What is the minimum price per unit you should bid on this project if you require a rate of return of 18 percent and have a tax rate of 34 percent? Multiple Choice $5.4723

$6.0184

$4.9272

$5.3133

$5.7040