$($a$)$ You are considering a new product launch. The project will cost Tk$.760,000,$ have a four$-$year life, and have no salvage value; depreciation is straight line to zero. Sales are projected at $420$ units per year; price per unit will be Tk$.17,200$; variable cost per unit will be Tk$.14,300$; and fixed costs will be Tk$.640,000$ per year. The required return on the project is $15$ percent, and the relevant tax rate is $35$ percent.

Required:

$($i$)$ 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?

$($ii$)$ Evaluate the sensitivity of your base$-$case NPV to changes in fixod costs.

$($iii$)$ What is the accounting break$-$even level of output for this project?