Please just answer the second question. The answers are there I just don't understand the steps to get NPV.

Cougar Athletics is soliciting bids on a 3-year contract to produce 3,000 t-shirts per year to be given away at athletic events. You have decided to bid on the contract. It will cost you $3 per shirt in variable costs (buying plain t-shirts and paying an employee to imprint them) and $5,000 per year in fixed costs. A t-shirt printing machine will cost $7,500. The machine will be depreciated to zero over its 3-year life and it will not have any salvage value. There are no net working capital implications for the project. If your tax rate is 20% and your required return on this project is 10%, how much would you bid for the contract? State your answer in the total price, not the per-unit price.

OCF annuity necessary to equal initial investment $3,015.86

NI needed to generate OCF $515.86

Sales needed to generate NI $17,144.83

Total Sales over three years $51,434.48

Now suppose you are offered the deal in question 1 for a price of $6 per shirt. What is the projects NPV?

Years 1-3

Sales 18000

VC 9000

FC 5000

D 2500

EBIT 1500

Taxes 300

NI 1200

OCF 3700

NPV $1,701.35