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You are considering a new product launch. The project will cost $1,650,000, have a four- year life, and have no salvage value; depreciation is straight-line

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You are considering a new product launch. The project will cost $1,650,000, have a four- year life, and have no salvage value; depreciation is straight-line to zero. Sales are projected at 150 units per year, price per unit will be $21,000, variable cost per unit will be $12,000, and fixed costs will be $480,000 per year. The required return on the project is 12 percent, and the relevant tax rate is 30 percent. (Do not round intermediate calculations.) a. The unit sales, variable cost, and fixed cost projections given above are probably accurate to within 110 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 Scenario nario Unit sales Variable cost per unit Fixed costs Lower bound L $C units Scenario Best- Base Best-case Worst- case NPV $O $ $ 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)) ANPV/AFC c. What is the accounting break-even level of output for this project? (Round your answer to nearest whole number. (e.g., 32)) Accounting break- even units

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