Paragraph D. (4 points) Should this machine be replaced? Support your argument with NPV. 3. (20 points) K Enterprises needs someone to supply it with 200,000 cartons of machine screws per year to support its manufacturing needs over the next 5 years, and you've decided to bid on the contract. It will cost you $1,200,000 after-tax 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 5 years, this equipment can be salvaged for $75,000 before tax. Your fixed production costs will be $350,000 before-tax per year, and your variable production costs should be $12.00 before-tax per carton. You also need an initial increase in account receivables of $100,000 and a decrease in account payables of $150,000, all of which will be recovered when the project ends. Your tax rate is 20 percent and you require a 10 percent return on your investment. What bid price per carton should you submit? Provide detailed steps to reach the answer including the OCF making NPV0