A financial analyst has computed both accounting and NPV break$-$even sales levels for a project using straight$-$line depreciation over a

$6-$year period. The project manager wants to know what will happen to these estimates if the firm can make a larger deduction for

depreciation in the early years of the project. The firm is in a $21\%$ tax bracket.

a$.$ Would the accounting break$-$even level of sales in the first year of the project increase or decrease?

b$.$ Would the NPV break$-$even level of sales in the first year of the project increase or decrease?

c$.$ Specifically, would you say that the switch to accelerated depreciation makes the project more or less attractive?