MINI CASE IIYou are an analyst for a major hockey stick manufacturer. The company is considering a new design for their hockey sticks. The market information is set our in the table below. The company plans to sell the new hockey sticks for six years. The equipment for the project has no salvage value. The equipment will be depreciated to zero over the project's life. The required rate of return is 14%, and the company has a 40% tax rate. Should you recommend the project? Explain you answer.ScenarioPessimisticExpectedOptimisticMarket Size (units)130,000150,000165,000Market Share21%25%27%Selling Price$ 140$ 148$ 150Variable Costs per unit$ 102$ 95$ 94Fixed Costs per year$ 1,015,000$ 915,000$ 910,000Initial Investment/equipment$ 2,200,000$ 2,100,000$ 2,050,000

x MINI CASE |l.docx Q}, [h MINT CASE 11 . You are an analyst for a major hockey stick manufacturer. The company is considering a new design for their hockey sticks. The market information is set our in the table below. The company plans to sell the new hockey sticks for six years. The equipment for the project has no salvage value. The equipment will be depreciated to zero over the project's life. The required rate of return is 14%, and the company has a 40% tax rate. Should you recommend the project? Explain you answer. Selling Price 5 150 Variable Costs -r unit _a_m Initial Investment/equimenl $ 2,200,000 5 2,100,000 $ 2,050,000