You are considering a new product launch The project will cost $1,675,000, have a four year life, and have no salvage value depreciation is straight line to zero Sales are projected at 195 units per year price per unit will be $16,300, variable cost per unit will be $9,400, and fixed costs will be $550,000 per year The required return on the project is 12 percent, and the relevant tax rate is 21 percent b Evaluate the sensitivity of your base case NPV to changes in fixed costs (A negative answer should be indicated by a minus sign Do not round intermediate calculations and round your answer to 2 decimal places, e g , 3 2 16 ) c What is the cash break even level of output for this project (ignoring taxes) (Do n ot round intermediate calculations and round your answer to 2 decimal places, e g , 32 16 ) d 1 What is the accounting break even level of output for this project (Do no t round intermediate calculations and round your answer to 2 decimal places, e g , 32 16 ) d 2 What is the degree of operating leverage at the accounting break even point (Do not round intermediate calculations and round your answer to 2 decimal places, e g , 32 16 )

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You are considering a new product launch. The project will cost $1,675,000, have a four-year life, and have no salvage value; depreciation is straight-line to

You are considering a new product launch. The project will cost $1,675,000, have a four-year life, and have no salvage value; depreciation is straight-line to zero. Sales are projected at 195 units per year; price per unit will be $16,300, variable cost per unit will be $9,400, and fixed costs will be $550,000 per year. The required return on the project is 12 percent, and the relevant tax rate is 21 percent.

b.	Evaluate the sensitivity of your base-case NPV to changes in fixed costs. (A negative answer should be indicated by a minus sign. Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)
c.	What is the cash break-even level of output for this project (ignoring taxes)? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)
d-1.	What is the accounting break-even level of output for this project? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)
d-2.	What is the degree of operating leverage at the accounting break-even point? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)