You are considering a new product launch. The project will cost $$870,000,$

have a $4-$year life, and have no salvage value; depreciation is straight$-$line to

zero. Sales are projected at $260$ units per year; price per unit will be $$16,175,$

variable cost per unit will be $$11,550,$ and fixed costs will be $$580,000$ per

year. The required return on the project is $9$ percent, and the relevant tax

rate is $24$ percent. Based on your experience, you think the unit sales,

variable cost, and fixed cost projections given here are probably accurate to

within $\backslash$pm $10$ percent.

a$.$ What are the best$-$case and worst$-$case NPVs with these projections?

Note: A negative answer should be indicated by a minus sign. Do

not round intermediate calculations and round your answers to $2$

decimal places, e$.$g$.,32\mathrm{.}16.$

b$.$ What is the base$-$case NPV$?$

Note: Do not round intermediate calculations and round your

answer to $2$ decimal places, e$.$g$.,32\mathrm{.}16.$

c$.$ What is the sensitivity of your base$-$case NPV to changes in fixed

costs?

Note: 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$.,32\mathrm{.}16.$