Your company is bidding on a contract to supply earphones per year for years. Fixed costs of production will be $ per year and variable costs will be $per unit.

It costs $ to purchase the necessary machines. The machines will be depreciated linearly to zero over years and will not have any value after that time.

The project requires an investment of $ for net working capital initially, which can be recouped at the end of the project.

The marginal tax rate is and the required return is

What is minimum level for the present value of operating cash flows EBIT t Dep. for the project to break even?

At what level of annual operating cash flow EBITtDep. does the project break even?

What is the annual depreciation in $

What is the minimum bid price for the contract in $ per unit