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Consider a project to supply $109$ million Pokemon trading cards per year for the next five year to the Pokemon$-$R$-$Us Corporations. You have some undeveloped land available that cost $$1,990,000$ five years ago. If you sold the land today you would net $$2,190,000$ after taxes. You anticipate that the land can be sold in five years for $$2,390,000$ net of taxes.

To supply the trading cards you will need to install $$5\mathrm{.}49$ million in new plant and equipment. These fixed assets will be depreciated straight$-$line to zero over the project's five$-$year life. The plant and equipment will be sold for $$590,000$ before taxes at the end of five years.

You anticipate an initial investment in net working capital of $$690,000,$ and an additional $$59,000$ in each subsequent year. You estimate that all net working capital will be recovered at the end of the project. Your variable production costs are $0\mathrm{.}59$ cents per card $($or $$0\mathrm{.}0059),$ and you have fixed costs of $$1,030,000$ per year. Your tax rate is $34$ percent and your required return on this project is $12$ percent.

What is the lowest that your bid price per card should be$?$ That is$,$ what per$-$unit price gives the project an NPV $=0?$

Part A: Start by calculating the operating cash flow that, when received as an annuity for $5$ years, would set the NPV $=0.($Do not round intermediate calculations and round your answer to $2$ decimal places, e$.$g$.,32\mathrm{.}16.)$

Part B: Now calculate the minimum bid price. $($Do not round intermediate calculations and round your answer to $4$ decimal places, e$.$g$.,32\mathrm{.}1616.)$

Bid price $

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