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1. You are considering a new productlaunch. The project will cost $680,000, have a four-year life, andhave no salvage value; depreciation is straight-line to zero. Salesare projected at 160 units per year, price per unit will be$19,000, variable cost per unit will be $14,000, and fixed costswill be $150,000 per year. The required return on the project is15%, and the relevant tax rate is 35%. (17 marks total)a. Based on your experience, the unitsales, variable cost, and fixed cost projections given here areprobably accurate to within ± 10%. What are the upper and lowerbounds for these projections for unit sales, variable cost, andfixed cost? b. What is the base-case NPV? (1 mark)c. What are the NPVs in the best-caseand worst-case scenarios? d. Evaluate the sensitivity of yourbase-case NPV to changes in fixed costs. (2.5 marks)e. What is this project’s cashbreak-even level of output (ignoring taxes)? (1mark)f. What is the accountingbreak-even level of output for this project, and what is the degreeof operating leverage (DOL) at the accounting break-even point? Howdo you interpret this DOLnumber? (2.5marks)g. What is the financial break-evenlevel of output for this project, and what is the degree ofoperating leverage (DOL) at the financial break-even point? How doyou interpret this DOLnumber?