You are considering a new product launch. The project will cost $820,000, have a four-year life, and have no salvage value; depreciation is straight-line to zero. Sales are projected at 450 units per years; price per unit will be $18,000; variable cost per unit will be $15,400; and fixed costs will be $610,000 per year. The required return on the project is 15% and the tax rate is 35%.

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

c) What is the accounting break-even level of output for this project?