year. The required return on the project is $11$ percent, and the relevant tax rate

is $23$ percent.

a$.$ 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? $($A

negative answer should be indicated by a minus sign. Do not round

intermediate calculations. Round your NPV answers to $2$ decimal places,

e$.$g$.,32\mathrm{.}16.$ Round your other answers to the nearest whole number, e$.$g$.$

$32.)$

b$.$ Evaluate the sensitivity of your base$-$case NPV to changes in fixed costs.

$($A negative answer should be indicated by a minus sign. Do not round

intermediate calculations and round your answer to $2$ decimal places,

e$.$g$.,32\mathrm{.}16.)$

c$.$ What is the cash break$-$even level of output for this project $($ignoring

taxes$)?($Do not round intermediate calculations and round your answer

to $2$ decimal places, e$.$g$.,32\mathrm{.}16.)$

d$-1.$ What is the accounting break$-$even level of output for this project? $($Do not

round intermediate calculations and round your answer to $2$ decimal

places, e$.$g$.,32\mathrm{.}16.)$

d$-2.$ What is the degree of operating leverage at the accounting break$-$even

point? $($Do not round intermediate calculations and round your answer

to $3$ decimal places, e$.$g$.,32\mathrm{.}161.)$