24. Scholastic Co. is evaluating a machine with an initial cost of $500,000 and a six-year life that costs $110,000 per year to operate. The firm uses straight-line depreciation; the applicable discount rate is 9%. The machine will have noi salvage value at the end of the project's life. The firm has a tax rate of 21%.

Calculate the EAC for the project. (Enter a positive value and round to 2 decimals)

25. Raph Inc. needs someone to supply it with 500,000 planks of wood per year to support its manufacturing needs over the next four years, and your company has decided to bid on the contract. It will cost your firm $4,000,000 to install the equipment necessary to start production. The equipment will be depreciated using the straight-line method to 0 over the project's life. The salvage value of the equipment is expected to be 0. Your fixed costs will be $1,000,000 annually, and your variable production costs are $10 per plank. You also need an initial investment in net working capital of $1,500,000, which will be recovered at the end of the project. The firm has a tax rate of 21%, and the required rate of return is 10%.

Calculate the bid price. (Round to 3 decimals)