Another utilization of CF analysis is setting the bid price on a project. To calculate bid price we set the project NPV equal to zero and find the required price. Thus, bid price represents a financial break-even level for the project. X Co. needs someone to supply it with 140,000 cartons of machine screws per year to support its manufacturing needs over the next five years, and you have decided to bid on a contract. It will cost you $1,800,000 to install the equipment necessary to start production. You will depreciate it straight line to zero over the project's life. Salvage value in five years is $150,000. Fixed productions costs are $265,000 per year and variable costs will be $8.5 per carton. Initial investment in NWC = $130,000. Tax rate is 35% and you require 14% on your investment, what bid price should you submit