You are considering a new product launch. The project will cost $830,000, have a 4-year life, and have no salvage value; depreciation is straight-line to zero. Sales are projected at 470 units per year; price per unit will be $18,500, variable 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, variable 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 scenarios? (A negative amount should be indicated by a minus sign. Do not round intermediate calculations and round your NPV answers to 2 decimal places, e.g., 32.16.) Lower bound Upper bound Scenario 423 units Unit sales Variable cost per unit 517 Fixed costs NPV Scenario Base-case Best-case Worst-case Scenario NPV Base-case Best-case Worst-case b. Calculate the sensitivity of your base-case NPV to changes in fixed costs. (A negative amount should be indicated by a minus sign. Do not round intermediate calculations and round your answer to 3 decimal places, e.g., 32.161.) c. What is the accounting break-even level of outputyfor this project? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) ANPVIAFC b. c. Accounting break-even units You are considering a new product launch. The project will cost $830,000, have a 4-year life, and have no salvage value; depreciation is straight-line to zero. Sales are projected at 470 units per year; price per unit will be $18,500, variable 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, variable 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 scenarios? (A negative amount should be indicated by a minus sign. Do not round intermediate calculations and round your NPV answers to 2 decimal places, e.g., 32.16.) Lower bound Upper bound Scenario 423 units Unit sales Variable cost per unit 517 Fixed costs NPV Scenario Base-case Best-case Worst-case Scenario NPV Base-case Best-case Worst-case b. Calculate the sensitivity of your base-case NPV to changes in fixed costs. (A negative amount should be indicated by a minus sign. Do not round intermediate calculations and round your answer to 3 decimal places, e.g., 32.161.) c. What is the accounting break-even level of outputyfor this project? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) ANPVIAFC b. c. Accounting break-even units