Heer Enterprises needs someone to supply it with 225,000 cartons of machine screws per year to support its manufacturing needs over the next years, and you've decided to bid on the contract. It will cost you $1, 230,000 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 7 years, this equipment can be salvaged for $75,000. Your fixed production costs will be $360,000 per year, and your variable production costs should be $13.20 per carton. You also need an initial investment in net working capital of $112, 500, all of which will be recovered when the project ends. Your tax rate is 34 percent and you require a 13 percent return on your investment. What is the depreciation tax shield and after tax salvage respectively? a. 56229; 51000 b. 59743; 49500 c. 56229; 75000 d. 59743; 75000 e. 52800; 51000 At what operating cash flow will you breakeven? a. 287840 b. 287984 c. 286754 d. 285432 e. 288908 What bid price per carton should you submit? a. $16.34 b. $16.56 c. $16.31 d. $15.03 e. $14.81