You are considering a new product launch. The project will cost $$830,000,$ have a $4-$year

Iffe, and have no salvage value; depreclation is straight$-$IIne to zero. Sales are projected

at $470$ units per year, price per unit will be $$18,500,$ varlable cost per unit will be $$15,200,$

and fixed costs will be $$845,000$ per year. The required return on the project is $10$

percent, and the relevant tax rate is $21$ percent.

a$.$ The unit sales, varlable cost, and fixed cost projections given above 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

scenarlos? $($A negative amount should be Indlcated by a minus sign. Do not round

Intermedlate calculations and round your NPV answers to $2$ decimal places, e$.$g$.,$

$32\mathrm{.}16.)$

b$.$ Calculate the sensitlvity of your base$-$case NPV to changes in fixed costs. $($A

negative amount should be indlcated by a minus sign. Do not round Intermedlate

calculations and round your answer to $3$ decimal places, e$.$g$.,32\mathrm{.}161.)$

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

Intermedlate calculations and round your answer to $2$ declmal places, e$.$g$.,32\mathrm{.}16.)$