If possible, please show use of formulas. Thank you!

a. 1. Drill Mart Inc. is considering a new product launch. The project will cost $1,200,000 have a eight-year life, and have no salvage value; depreciation is straight-line to zero. Sales are projected at 24,000 units per year; price per unit will be $250, variable costs per unit will be $150 and fixed costs will be $400,000 per year. The required return on the project is 14 percent, and tax rate - 0% (i.c., ignore taxes). What is the accounting break-even level of output for this project? b. Find the firm's operating cash flow (OCF) if the firm just breaks-even on an accounting basis (that is, at Q - accounting break-even level). What is the cash break-even level of output for this project? d. How many units, at a minimum, must Drill Mart sell before the project's NPV becomes negative? The marketing department of Drill Mart reports the annual expected sales of 7,000 units. Shall Drill Mart accept this project? Why? Calculate NPV and IRR at this level of sales (7,000 units). 0. e. 2. At an output level of 3,000 units, you calculate that the degree of operating leverage is 2.5. Fixed costs are $120,000. (a) If output rises to 3,600 units, calculate the percentage change in OCF, new OCF and new DOL. (b) If output falls to 2,400 units, calculate the percentage change in OCF, new OCF and new DOL. (hint: start by finding the OCF at 2,000 units using DOL equation of 1+FC/OCF)