A project requires an initial investment of $10,000, straight-line depreciable to zero over four years. The discount rate is 10%. The firms tax bracket is 34%, and they receive a tax credit for negative earnings in the year in which the loss occurs. Additional information for variables with forecast error is shown below:

Item	Base Case	Lower Bound	Upper Bound
Unit Sales	3,000	2,750	3,250
Price/Unit	$14	$13	$16
Variable cost/unit	$9	$10	$8
Fixed costs	$9,000	$10,000	$8,500

a. What is the base case NPV for the project?

b. What is the worst case NPV for the project?

c. What is the best case NPV for the project?

d. Suppose you want to conduct a sensitivity analysis for the possible changes from the base case in unit sales. What is the IRR when the sales level equals 3,250 units?

e. Suppose you are interested in the projects sensitivity to unit price. What is the NPV for the base case at a price of $13 per unit?

f. What is the base case accounting break-even point?

g. What is the base case cash break-even point?

h. What is the base case financial break-even point? Ignore taxes.