d-2. Using OCF _base from b), what is the degree of operating leverage?

3 10 Check my work You are considering a new product launch. The project will cost $2.050.000, have a 4-year life, and have no salvage value: depreciation is straight-line to O. Sales are projected at 170 units per year, price per unit will be $26,000, variable cost per unit will be $16.000: and fixed costs will be 5560,000 per year. The required return on the project is 15%, and the relevant tax rate is 30% 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.) Variable cost Fixed costs Base 170 16000 5 000 G722 187 $ 14400 $ 504000 17682 Worst 153 17600 5616000 27366 b. Evaluate the sensitivity of your base-case NPV to changes in foved costs. (Negative answers should be indicated by a minus sign. Do not round Intermediate calculations. Round the final answer to 3 decimal places. Omit S sign in your response.) ANPVIAFC $ -1958 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 56 units M Graw Na 3 10 Check my work You are considering a new product launch. The project will cost $2.050.000, have a 4-year life, and have no salvage value: depreciation is straight-line to O. Sales are projected at 170 units per year, price per unit will be $26,000, variable cost per unit will be $16.000: and fixed costs will be 5560,000 per year. The required return on the project is 15%, and the relevant tax rate is 30% 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.) Variable cost Fixed costs Base 170 16000 5 000 G722 187 $ 14400 $ 504000 17682 Worst 153 17600 5616000 27366 b. Evaluate the sensitivity of your base-case NPV to changes in foved costs. (Negative answers should be indicated by a minus sign. Do not round Intermediate calculations. Round the final answer to 3 decimal places. Omit S sign in your response.) ANPVIAFC $ -1958 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 56 units M Graw Na