You are considering a new product launch. The project will cost $$2,275,000,$ have a fouryear life, and have no salvage value; depreciation is straight$-$line to zero. Sales are projected at $300$ units per year; price per unit will be $$19,400,$ variable cost per unit will be $$13,550,$ and fixed costs will be $$690,000$ per year. The required return on the project is $10$ percent, and the relevant tax rate is $23$ percent.

a$.$ Based on your experience, you think the unit sales, variable cost, and fixed cost projections given here 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? $($A negative answer should be indicated by a minus sign. Do not round intermediate calculations. Round your NPV answers to $2$ decimal places, e$.$g$.,32\mathrm{.}16.$ Round your other answers to the nearest whole number, e$.$g$.32.)$

$\backslash$table$[[$Scenario$,$Unit Sales,,Cost,,Costs,NPV$],[$Base$,300,$$$,13,550,$$$,690,000,],[$Best$,13,,,,,],[$Worst$,4,,,,,]]$

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$.,32\mathrm{.}16.)$

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$.,32\mathrm{.}16.)$

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$.,32\mathrm{.}16.)$

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 $3$ decimal places, e$.$g$.,32\mathrm{.}161.)$

b$.\frac{?}{{?}_{\frac{?}{?}}NPV}\frac{\text{I}}{{?}_{\frac{?}{?}}}FC$

c$.$ Cash break$-$even

d$-1.$ Accounting break$-$even

d$-2.$ Degree of operating leverage