You are evaluating a project for The Ultimate recreational tennis racket, guaranteed to correct that wimpy...

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You are evaluating a project for The Ultimate recreationaltennis racket, guaranteed to correct that wimpy backhand. Youestimate the sales price of The Ultimate to be $440 per unit andsales volume to be 1,000 units in year 1; 1,250 units in year 2;and 1,325 units in year 3. The project has a 3-year life. Variablecosts amount to $245 per unit and fixed costs are $100,000 peryear. The project requires an initial investment of $177,000 inassets, which will be depreciated on a straight-line basis with alife of 3 years. The actual market value of these assets at the endof year 3 is expected to be $39,000. NWC requirements at thebeginning of each year will be approximately 20 percent of theprojected sales during the coming year. The tax rate is 35 percentand the required return on the project is 11 percent. (Use SLdepreciation table) What will the cash flows for this project be?(Negative amounts should be indicated by a minus sign. Round youranswers to 2 decimal places.)

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You are evaluating a project for The Ultimate recreationaltennis racket, guaranteed to correct that wimpy backhand. Youestimate the sales price of The Ultimate to be $440 per unit andsales volume to be 1,000 units in year 1; 1,250 units in year 2;and 1,325 units in year 3. The project has a 3-year life. Variablecosts amount to $245 per unit and fixed costs are $100,000 peryear. The project requires an initial investment of $177,000 inassets, which will be depreciated on a straight-line basis with alife of 3 years. The actual market value of these assets at the endof year 3 is expected to be $39,000. NWC requirements at thebeginning of each year will be approximately 20 percent of theprojected sales during the coming year. The tax rate is 35 percentand the required return on the project is 11 percent. (Use SLdepreciation table) What will the cash flows for this project be?(Negative amounts should be indicated by a minus sign. Round youranswers to 2 decimal places.)