You are considering a new product launch. The project will cost $1,750,000, have a 4-year life, and have no salvage value; depreciation is straight-line to 0. Sales are projected at 220 units per year, price per unit will be $20,000: variable cost per unit will be $13,000; and fixed costs will be $500,000 per year. The required return on the project is 15%, and the relevant tax 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.) Scenario Base Unit Sales 220 Variable Cost $ 2860000 $ 3460600 Fixed Costs $ 500000 $ 550000 NPV $ 10811904.80 * $ 12068095.28 $ 9555714.32 Best 242 Worst 198 $ 2316600 $ 450000 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.) ANPVIAFC $ 216.24 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 71 units d-1. What is the accounting break-even level of output for this project? (Round the final answers to the nearest whole unit.) Accounting break-even 134 units d-2. What is the degree of operating leverage at the accounting break-even point? (Round the final answer to 4 decimal places.) Degree of operating leverage 0.35