Heer Enterprises needs someone to supply it with $225,000$ cartons of machine screws per year to support its manufacturing needs over the next $7$ years, and you've decided to bid on the contract. It will cost you $$1,230,000$ to install the equipment necessary to start production; you'll depreciate this cost straight$-$line to zero over the project's life. You estimate that in $7$ years, this equipment can be salvaged for $$75,000.$ Your fixed production costs will be $$360,000$ per year, and your variable production costs should be $$13\mathrm{.}20$ per carton. You also need an initial investment in net working capital of $$112,500,$ all of which will be recovered when the project ends. Your tax rate is $32$ percent and you require a $13$ percent return on your investment. What bid price

$NPV=$$$0=-$$$1,230,000-$$$112,500+$OCF$(\frac{1-\frac{1}{(1+0\mathrm{.}13{)}^7}}{0\mathrm{.}13})+\frac{(\text{\$}75,000-\text{\$}0)(1-0\mathrm{.}32)+\text{\$}112,500}{(1+0\mathrm{.}13{)}^7}$

OCF$=$$$287,839\mathrm{.}64$

$$287,839\mathrm{.}64=[(P-$$$13\mathrm{.}20)(225,000)-$$$360,000][1-0\mathrm{.}32)+($$$1,230,\frac{000}{7})(0\mathrm{.}32)$

$P=$$$16\mathrm{.}31$ per carton should you submit?

Can you find the bid price another way without doing it like this please $?$