Question $6(1\mathrm{.}5$ points$)$

What is the bid price for the following situation: You have been approached by a client interested in buying $140,000$ widgets a year from you for $10$ years and has asked you to submit a bid for his consideration. To be able to produce these widgets, you need to invest in $$400,000$ in equipment. The equipment has a taxable life of $10$ years and will be depreciated using straight line. At the end of the $10$ years, the equipment can be sold for $$70,000($market or scrap value$).$ The variable cost of producing the widgets is $$12$ per unit and you will incur in a fixed cost of $$50,000$ a year. You have estimated you will need $$40,000$ today in working capital. The appropriate discounting rate for this type of projects is $13\%.$ The corporate tax rate applicable to you in this case is $30\%.$ What is the minimum price you would charge for each widget $($bid price to be given by you to the client$)?$

In your answer, round to the nearest TWO decimals, do not use the dollar $($$$)$ sign. For example, if the answer you obtain is $$9\mathrm{.}0876$ then enter $9\mathrm{.}09$ ; if it is $$14$ then enter $14\mathrm{.}00$