C1 You are the financial analyst for a tennis racket manufacturer. The company is considering using a graphitelike material in its tennis rackets. The company has estimated the information in the following table about the market for a racket with the new material. The company expects to sell the racket for six years. The equipment required for the project will be depreciated on a straight-line basis and has no salvage value. The required return for projects of this type is 13 percent and the company has a 21 percent tax rate. 9 Pessimistic Expected Optimistic Market size 110,000 120,000 132,000 Market share 20% 23% 25% Selling price $ 139 $ 143 $ 147 Variable costs per $ 77 73 $ 70 unit Fixed costs per $ 975,000 $ 920,000 $ 890,000 year Initial investment $2,300,000 $2,150,000 $1,950,000 10 11 12 13 14 es Calculate the NPV for each case for this project. Assume a negative taxable income generates a tax credit. (A negative amount should be indicated by a minus sign. Do not round intermediate calculations and round your answers to 2 decimal places, e.g.. 32.16.) 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 NPV Pessimistic Expected Optimistic