You are considering a new product launch. The project will cost $2,150,000, have a 4-year life, and have no salvage value; depreciation is straight-line to 0. Sales are projected at 150 units per year, price per unit will be $28,000; variable cost per unit will be $17,000; and fixed costs will be $580,000 per year. The required return on the project is 12%, and the relevant tex rate is 34% a. Based on your experience, you think the unit sales, variable cost, and fixed cost projections given here are probably accurate to within +10%. 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 answers should be indicated by a minus sign. Do not round intermediate calculations. Round the final NPV answers to 2 decimal places. Omit $ sign in your response.) Variable cost Fixed costs base $ 17000 $ 580000 $ 550051.70 * 15300 $ 522000 5 1559393.26 S 18700 638000 $ -357052.68 Scenario Unit Sales NPV 150 Best 165 Worst 135 b. Evaluate the sensitivity of your base-case NPV to changes in fixed costs. (Negative answers should be indicated by a minus sign. Do not round intermediate calculations. Round the final answer to 3 decimal places. Omit $ sign in your response.) ANPV/AFC $ 2.005 c. What is the cash break-even level of output for this project (ignoring taxes)? (Round the final answers to the nearest whole unit.) Cash break-even 53 units b. Evaluate the sensitivity of your base-case NPV to changes in fixed costs. (Negative answers should be indicated by a minus sign. Do not round Intermediate calculations, Round the final answer to 3 decimal places. Omit S sign in your response ANPV/AFC $ 2005 c. What is the cash break even level of output for this project (ignoring taxes)? (Round the final answers to the nearest whole unit.) Cash break-even 53 units -1. What is the accounting break even level of output for this project? (Round the final answers to the nearest whole unit.) Accounting break oven 102 d-2. What is the degree of operating leverage at the accounting break-even point? (Round the final answer to 4 decimal places) units Degree of operating leverage 2.0791