Please show how to solve questions 2-5 and show formulas.

I have calculated everything that is shown in question 1. I beleive they are correct, but if you see any errors, I'd appreciate it.

3 Input area: Initial cost Unit sales Price/unit Variable cost/unit Fixed costs Project life 15,500,000 Required return 2,000 Tax rate 10,000 Unit sales uncertainty 7,000 Variable cost uncertainty 900,000 Fixed cost uncertainty 12% 21% 5% 5% 5% Question 1 + B Unit sales Variable cost/unit Fixed costs Base Case 2,000 7,000 900,000 est Case 2,100 6,650 900,000 Worst Case 1,900 7,350 900,000 Sales Variable cost Fixed cost Depreciation EBIT Taxes (21%) Net income 20,000,000 14,000,000 900,000 3,100,000 2,000,000 420,000 1,580,000 21,000,000 13,300,000 855,000 3,100,000 3,745,000 786,450 2,958,550 19,000,000 14,700,000 945,000 3,100,000 255,000 53,550 201,450 OCF 4,680,000 6,058,550 3,301,450 NPV $16,870,352.63 $21,839,716.86 $11,900,988.39 Question 2 Accounting break-even Question 3 Cash break-even (ignoring taxes) 35 Question 4 OCF at financial-break even Financial break-even 37 39 Question 5 Degree of operating leverage Task 1: Project Evaluation You are considering a new product launch. The project will cost $15,500,000, have a five- year life, and have no salvage value; depreciation is straight-line to zero. Sales are projected at 2,000 units per year; price per unit will be $10,000, variable cost per unit will be $7,000, and fixed costs will be $900,000 per year. The required return on the project is 12 percent, and the relevant tax rate is 21 percent. Based on your experience, you think the unit sales, variable cost, and fixed cost projections given here are probably accurate to within 15 percent. Questions: 1. What are the upper and lower bounds for these projections? What are NPVs for the base- case, the best-case and worst-case scenarios? (20 Points) 2. What is the accounting break-even level of output for this project? (5 Points) 3. What is the cash break-even level of output for this project (ignoring taxes)? (5 Points) 4. What is the financial break-even level of output for this project? (5 Points) 5. What is the degree of operating leverage under each scenario? (5 Points) 6. Draw the chart showing the sensitivity of the base-case NPV to changes in unit price. (10 Points)