You are considering a new product launch. The product will cost $1900000 have a 4 year lofe and have no salve value; depreciation is a straight-line to zero. Sales are projected at 180 units per year; proce per unit will be $23,000, variable cost per unit will be $14,500, and fixed costs will be $530,000 per year. The required rate of return on the project is 15 percent, and the relevant tax rate is 35 percent.

You are considering a new product launch. The project will cost $1,900,000, have a four- year life, and have no salvage value, depreciation is straight-line to zero. Sales are projected at 180 units per year, price per unit will be $23,000, variable cost per unit will be $14,500, and fixed costs will be $530,000 per year. The required return on the project is 15 percent, and the relevant tax rate is 35 percent. (Do not round intermediate calculations.) a. The unit sales, variable cost, and fixed cost projections given above are probably accurate to within 10 percent. What are the upper and lower bounds for these projections? What is the base-case NPV? What are the best-case and worst-case scenarios? (Negative amount should be indicated by a minus sign. Round your NPV answers to 2 decimal places. (e.g., 32.16)) Upper bound Lower bound units Scenario Unit sales Variable cost per unit Fixed costs NPV Scenario Best- Base Best-case Worst- case b. Calculate the sensitivity of your base-case NPV to changes in fixed costs. (Negative amount should be indicated by a minus sign. Round your answer to 3 decimal places. (e.g., 32.161)) ANPVIAFC c. What is the accounting break-even level of output for this project? (Round your answer to nearest whole number. (0.9., 32)) Accounting break even units