You are considering a new product launch. The project will cost $$1,900,000,$ have a four$-$

year life, and have no salvage value; depreclation Is straight$-$IIne to zero. Sales are

projected at $180$ units per year; price per unlt will be $$23,000,$ varlable cost per unit will

be $$14,500,$ and fixed costs will be $$530,000$ per year. The requlred return on the

project is $15$ percent, and the relevant tax rate is $25$ percent.

a$-1.$ 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? $($Do not round Intermedlate calculations and round your answers to

the nearest whole number, e$.$g$.,32.)$

a$-2.$ What is the base$-$case NPV$?$ What are the best$-$case and worst$-$case scenarios? $($A

negatlve answer should be indlcated by a minus sign. Do not round intermedlate

calculations and round your answers to $2$ decimal places, e$.$g$.,32\mathrm{.}16.)$

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

negative answer 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 $2$ decimal places, e$.$g$.,$

$32\mathrm{.}16.)$