QUESTION $1[$Total Marks: $50]$Tech Innovators Inc. is planning to launch a cutting$-$edge smart home device called the SmartHome Hub.This innovative product is designed to seamlessly integrate with various smart home systems, providingusers with centralised control over their home automation devices. The project will require an initialinvestment of R$720,000,$ have a lifespan of four years, and no salvage value, with straight$-$line depreciationto zero.Product Details: Name: SmartHome Hub Functionality: The SmartHome Hub will allow users to control lighting, security systems,thermostats, and other smart devices from a single interface. It features voice control, a user$-$friendly mobile app, and compatibility with major smart home ecosystems like Google Home andAmazon Alexa. Sales Projections: Tech Innovators Inc. anticipates selling $190$ units annually at a priceof R$21,000$ per unit. Costs: Variable Cost per Unit: R$15,000$ Fixed Costs: R$225,000$ per yearFinancial Details: Required Return: $15\%$ Tax Rate: $28\%$The SmartHome Hub aims to enhance convenience and security for homeowners, making it an attractiveaddition to any modern household. Given that for the above scenario, the unit sales, variable costs, andfixed costs projections are probably accurate to within plus$/$minus ten per cent: Determine the following: Theupper and lower bounds for these projections; the base$-$case NPV; the best$-$case and worst$-$case scenarios;the sensitivity of your base$-$case NPV to changes in fixed costs; the break$-$even level of output for thisproject $($ignoring taxes$)$; the accounting break$-$even level of output for this project; the degree of operatingleverage at the accounting break$-$even point.QUESTION $2[$Total Marks: $10]$Taylor is looking to get a new smartphone and is weighing the options of leasing it or buying it with a $3-$yearfinancing plan. The smartphone is priced at R$35000.$ The store has a special offer where Taylor pays R$4000$upfront and R$445$ monthly for the next three years. If Taylor opts to buy the smartphone, the payments willbe spread over three years at an APR of $5\%.$ Taylor estimates the smartphone could be sold for R$28,000$after three years. Should Taylor lease or buy the smartphone?