pls solve item 31 thanks

30. Another utilization of cash flow analysis is setting the bid price on a project. To calculate the bid price, we set the project NPV equal to zero and find the required price. Thus the bid price represents a financial break-even level for the project. Guthrie Enterprises 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've decided to bid on the contract. It will cost you S1,800.000 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 five years this equipment can be salvaged for $150,000. Your fixed production costs will be $265,000 per year, and your variable production costs should be $8.50 per carton. You also need an initial investment in net working capital of $130,000. If your tax rate is 35 percent and you Calculating a Bid Price require a 14 percent return on your investment, what bid price should you submit? Financial Break-Even Analysis The technique for calculating a bid price can be extended to many other types of problems. Answer the following questions using the same technique as setting a bid price; that is, set the project NPV to zero and 31. solve for the variable in question In the previous problem, assume that the price per carton is $16 and find the t NPV. What does your answer tell you about your bid price? What do you about the number of cartons you can sell and still break even? How about your level of costs? e previous problem again with the price still at S16-but find the quantity that you can supply and still break even. (Hint: It's less than ns a price of S16 and a quantity of 140,000 cartons per year, and find the highest level of fixed costs you could afford and still break even. (Hint c