blold yuu Replace the machine? (23 marks) NOTE: You must showa formulas for full marks. The end answer is only worth a small portion of the marks show all rate conversions and all 3. You are bidding on a contract with the City of Toronto for a five year contract to install automated Toll Road Collection systems. If you get the contract you will need to purchase equipment at a cost of $1,000,000 which is in the 25% CCA category and can be sold for $430,000 in 5 years. You will also be required to invest $220,000 in net working capital to the project which you will reclaim in five years. The contract will require you to install 90 systems per year for five years with a variable cost per unit of $150,000 and annual fixed costs of $500,000. If your tax rate is 35% and you require a 11% return what is the minimum price you should bid per system? a) Draw a detailed timeline (6 marks) b) What is the minimum bid price? (25 marks) NOTE: You must show a clear and detailed timeline, formulas for full marks. The end answer is only worth a small portion of the marks show all rate conversions and all