You are considerlng a new product launch. The project will cost $$2,050,000,$ have a $4-$year life, and have no salvage value;

depreclation Is straight$-$lIne to $0.$ Sales are projected at $170$ units per year; price per unit will be $$26,000$; varlable cost per unit will be

$$17,000$; and fixed costs will be $$520,000$ per year. The requlred return on the project is $15\%,$ and the relevant tax rate is $35\%.$

a$.$ Based on your experlence, you think the unit sales, varlable 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 scenarlos? $($Negatlve answers should be Indlcated by a minus sign. Do not round Intermedlate calculatlons. Round the

final NPV answers to $2$ decimal places. Omit $ sign In your response.$)$

b$.$ Evaluate the sensitivity of your base$-$case NPV to changes in fixed costs. $($Negatlve answers should be Indlcated by a minus sign.

Do not round Intermedlate calculations. Round the final answer to $3$ decimal places. Omit $ sign In your response.$)$

$\frac{?}{{?}_{\frac{?}{?}}NP}\frac{V}{\frac{?}{{?}_{\frac{?}{?}}}}FC,$$

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 unlts

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 unlts

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