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To the price po presented the text we want the project NPV us to and found the price wsing the definition of OOR Thus the

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To the price po presented the text we want the project NPV us to and found the price wsing the definition of OOR Thus the price presents a nd break even level for the project. This type of anys can be extended to many other types of problems Martin Enterprises need someone to supply it with 31000 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 $940,000 to install the equipment necessary to start productions you depreciate this cost straight line to mere over the project's life. You estimate that in five years, this equipment can be salvaged for $103.000 Your feed production costs will be $515,000 per year, and your variable production costs should be $17.95 per carton. You also need an initial investment in net working capital of $102.000. Assume your tax rate is 21 percent and you require a return of 12 percent on your investment a. Assuming that the price per carton is $27.20, what is the NPV of this project? Do not round Intermediate calculations and round your answer to 2 decimal places, 32.56) b. Assuming that the price per carton is $27.20 find the quantity of cartons per year you can supply and break even ontround intermediate calculations and round your answer to the nearest whole numbes 32) Assuming that th e per carton is $27.20 And the highest level of cost you coudondeach year and breve no round c ons and round your callce . 26)

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