To solve the bid price problem presented in the text, we set theproject NPV equal to zero and found the required price using thedefinition of OCF. Thus the bid price represents a financialbreak-even level for the project. This type of analysis can beextended to many other types of problems. Martin Enterprises needssomeone to supply it with 134,000 cartons of machine screws peryear to support its manufacturing needs over the next five years,and you’ve decided to bid on the contract. It will cost you$955,000 to install the equipment necessary to start production;you’ll depreciate this cost straight-line to zero over theproject’s life. You estimate that, in five years, this equipmentcan be salvaged for $112,000. Your fixed production costs will be$530,000 per year, and your variable production costs should be$18.25 per carton. You also need an initial investment in networking capital of $108,000. Assume your tax rate is 24 percent andyou require a return of 12 percent on your investment. a. Assumingthat the price per carton is $27.80, what is the NPV of thisproject? (Do not round intermediate calculations and round youranswer to 2 decimal places, e.g., 32.16.) b. Assuming that theprice per carton is $27.80, find the quantity of cartons per yearyou can supply and still break even. (Do not round intermediatecalculations and round your answer to the nearest whole number,e.g., 32.) c. Assuming that the price per carton is $27.80, findthe highest level of fixed costs you could afford each year andstill break even. (Do not round intermediate calculations and roundyour answer to 2 decimal places, e.g., 32.16.)