You are considering a new product launch. The project will cost $2,400,000, have a 4-year life, and have no salvage value; depreciation is straight-line to 0. Sales are projected at 180 units per year, price per unit will be $30,000; variable cost per unit will be $19,500; and fixed costs will be $630,000 per year. The required return on the project is 12%, and the relevant tax rate is 35% a. Based on your experience, you think the unit sales, variable cost, and fixed cost projections given here are probably accurate to within +10%. 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? (Negative answers should be indicated by a minus sign. Do not round intermediate calculations. Round the final NPV answers to 2 decimal places. Omit $ sign in your response.) Scenario Unit Sales Variable Cost Fixed Costs NPV Base 180 $ 19500 $ 630000 $ 725432.48 Best 198 $ 17550 $ 567000 $ 1985218.68 Worst 162 $ 21450 $ 693000 $ -395759.47 b. Evaluate the sensitivity of your base-case NPV to changes in fixed costs. (Negative answers should be indicated by a minus sign. Do not round intermediate calculations. Round the final answer to 3 decimal places. Omit $ sign in your response.) ANPV/AFC -1.974 d-2. Using OCF base from b), what is the degree of operating leverage? We are evaluating a project that costs $894,000, has an eight-year life, and has no salvage value. Assume that depreciation is straight-line to zero over the life of the project. Sales are projected at 86,000 units per year. Price per unit is $64, variable cost per unit is $44, and fixed costs are $780,000 per year. The tax rate is 35%, and we require a 10% return on this project. Suppose the projections given for price, quantity, variable costs, and fixed costs are all accurate to within 110%. Calculate the best-case and worst-case NPV figures. (Omit $ sign in your response. Negative answers should be indicated by a minus sign. Do not round intermediate calculations. Round the final answers to 2 decimal places.) Best-case NPV Worst-case NPV $