Use the following base case information to evaluate the project: PT Universitas has a project cost of $850,000, has a five-year life, and has a salvage value of $150,000. Depreciation is straight-line to zero. The required return is 15% and tax rate is 34%. Sales are projected at 3550 units per year. Price per unit is $500. Variable cost per unit is $300 and fixed costs are $250,000 per year. It is known that the depreciation expense is $190,000 per year. The engineering department estimates you will need an initial net working capital investment of $70,000. a. Scenario Analysis Suppose you think that the unit sales, price, variable cost, and fixed cost projections given are accurate to within 5%. 1. What are the upper and lower bounds for these projections? 2. What is the base-case NPV? 3. What are the best- and worst- case scenario NPVs? b. Sensitivity Analysis What is the sensitivity of OCF to changes in the variable cost figure at base case? c. Break-Even Analysis Given the base-case projections in the previous problem, what are the cash, accounting, and financial break-even sales levels for this project? d. Operating Leverage What is the degree of operating leverage at base case