A proposed project has fixed costs of $84,000 per year. The operating cash flow at 6,400 units is $95,800. Ignoring the effect of taxes, what is the degree of operating leverage? (Round your answer to 4 decimal places. (e.g., 32.1616)) Degree of operating leverage If units sold rise from 6,400 to 6,900, what will be the new operating cash flow? (Do not round intermediate calculations and round your final answer to 2 decimal places. (e.g., 32.16)) Operating cash flow What is the new degree of operating leverage? (Do not round intermediate calculations and round your final answer to 4 decimal places. (e.g., 32.1616)) DOL Consider a project to supply Detroit with 20,000 tons of machine screws annually for automobile production. You will need an initial $3,000,000 investment in threading equipment to get the project started; the project will last for four years. The accounting department estimates that annual fixed costs will be $850,000 and that variable costs should be $450 per ton; accounting will depreciate the initial fixed asset investment straight-line to zero over the four-year project life. It also estimates a salvage value of $280,000 after dismantling costs. The marketing department estimates that the automakers will let the contract at a selling price of $600 per ton. The engineering department estimates you will need an initial net working capital investment of $300,000. You require a 18 percent return and face a marginal tax rate of 38 percent on this project. a-1 What is the estimated OCF for this project? OCF a-2 What is the estimated NPV for this project? (Round your answer to 2 decimal places. (e.g., 32.16)) $ b. Suppose you believe that the accounting department's initial cost and salvage value projections are accurate only to within 15 percent, the marketing department's price estimate is accurate only to within +10 percent, and the engineering department's net working capital estimate is accurate only to within 15 percent. What is your worst-case and best-case scenario for this project? (Negative amounts should be indicated by a minus sign. Round your answers to 2 decimal places. (e.g.. 32.16)) NPV $ Worst-case Best-case 55