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please answer completely and correctly all questions thanks connect k Three Assignment Question 3 (of 6) value 10.00 points You are the financial analyst for
please answer completely and correctly all questions thanks
connect k Three Assignment Question 3 (of 6) value 10.00 points You are the financial analyst for a tennis racket manufacturer. The company is considering using a graphitelke matenal in its tennis rackets. The company has estimated the ormation n olonna ta . about the market for a racket with the new material. The company expects to sell the racket for five The equipment required for the project has no salvage value and will be depreciated on a straight-ine basis. The required return for projects of this type is 14 percent, and the company has a 35 percent tax rate Market size Market share Selling price Variable costs per unit Fixed costs per year nitial investment 122,000 137,000 162,000 154 91 $ 958,000 $ 913,000 883,000 $1,555,000 $1,470,000 $1,385,000 2496 19% 143 $ 97 $ 22% 148 $ 92 $ Calculate the NPV for each case for this project. Assume a negative taxable income generates a tax credit. (A negative answer should be indicated by a minus sign. Do not round intermediate calculations and round your answers to 2 decimal places, e.g. 32.16.) Pessimistic Expected Optimistic References eBook & Resources Worksheet Dificulty 2 Intermediate T Service Center 5-9088
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