Problem $10-20$ Calculating a Bid Price $[$LO$3]$

Martin Enterprises needs someone to supply it with $106,000$ cartons of machine screws per year to support its manufacturing needs over the next five years, and you've decided to bid on the contract. It will cost you $$725,000$ to install the equipment necessary to start production; you'll depreciate this cost straight$-$line to zero over the project's life. You estimate that, in five years, this equipment can be salvaged for $$73,000.$ Your fixed production costs will be $$295,000$ per year, and your variable production costs should be $$9\mathrm{.}45$ per carton. You also need an initial investment in net working capital of $$56,000.$ If your tax rate is $22$ percent and you require a return of $10$ percent on your investment, what bid price should you submit? $($Do not round intermediate calculations and round your answer to $2$ decimal places, e$.$g$.,32\mathrm{.}16.)$

Bid price