b

You are the financial analyst for a tennis racquet manufacturer. The company is considering using a graphite-tike material in its tennis: racquets. The company has estimated the information in the following table about the market for a racquet with the new materlal. The company expects to sell the racquet for six years. The equipment required for the project has no salvage value. The equipment will be depreclated straight-line to zero over the project's life. The required return for projects of this type is 15 percent, and the company has a 40 percent taxrate. Assume the company has other profitable ongoing operations that are suificlent to cover any losses. Should you recomitend the project? Coiculate the NPV under each scenario. (Round the final answers to 2 decimol places. Negative amounts should be indicated by o minus sign. Omlt 5 tign in your response.)