A firm that pays no tax is considering a 5 year project that requires an initial investment of $25,000 and has a beta of 1.5. The project has the following annual projected income statement:

Sales	$50,000
Cost of Goods Sold (Variable Costs)	20,000
Depreciation	5,000
Profit	$25,000

The treasury bill rate is 3% and the expected return on the market is 6.33%

a) What is the degree of operating leverage of the project?

b) What is the accounting breakeven point for this project?

c) What is the NPV breakeven point for the project?

d) If your answers to parts b and c are different, explain why.