Please help with part 2 & part 4.

What is minimum level for the present value of operating cash flows (EBIT (1-t) + Dep.) for the project to break even? What is the annual depreciation (in $ )? Correct Annual depreciation: D=C0/t=3,000,000/5=600,000 Part 4 What is the minimum bid price for the contract (in \$ per unit)? =3,010,502 Your company is bidding on a contract to supply 150,000 earphones per year for 5 years. Fixed costs of production will be $500,000 per year and variable costs will be $8.25 per unit. It costs $3,000,000 to purchase the necessary machines. The machines will be depreciated linearly to zero over 5 years and will not have any value after that time. The project requires an investment of $30,000 for net working capital initially, which can be recouped at the end of the project. The marginal tax rate is 35% and the required return is 9%. At what level of annual operating cash flow (EBIT (1-t) + Dep.) does the project break even