QUEEN Enterprises needs someone to supply it with $185000$ plated bullets per year to support its manufacturing needs over the next $4$years, and you've decided to bid on the contract. It will cost you $$1750000$ to install the equipment necessary to start production; you'll depreciate this cost straight$-$line to zero over the project's life. You estimate that in the end of years this equipment can be salvaged for $$160000.$ Your fixed production costs will be $$360000$ per year, and your variable production costs should be $$9$ per carton. You also need an initial investment in net working capital of $$250,000.$ If your tax rate is $0\mathrm{.}23$ percent and you require a return of $0\mathrm{.}13$ percent on your investment,

if there was a downturn in the economy and fixed cost increased to $400,000$ and variable cost increase by $10\%$

NOTE

initial investment should be in the $(-)$

any answer you get with minus write $(-)$ in front of the answer such as $-12000$

What is the initial investment

what is the terminal value?$($hint$,$discounted$)$

what is the discounted cash flow

what is the bid price

what is the accounting break even point

if there was a downturn in the economy and fixed cost increased to $400,000$ and variable cost increase by $10\%$ and selling price was $13$$

what is the new NPV