Problem 12-13 Project Cash Flows (LG12-3) You are evaluating a project for The Uitimate recreational tennis racket, guaranteed to correct that wimpy backhand. You estimate the sales price of The Uitimate to be $420 per unit and sales 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. Variable costs amount to $235 per unit and flxed costs are $100,000 per year. The project requires an intial investment of $171,000 in assets, which can be depreciated using bonus depreciation. The actual market value of these assets at the end of year 3 is expected to be $37,000. NWC requirements at the beginning of each year will be approximately 20 percent of the projected soles during the coming year. The tax rate is 21 percent and the required return on the project is 12 percent (Use SL depreciation toble) What will the cash flows for this project be? Note: Negotive amounts should be indicated by a minus sign. Round your answers to 2 decimal places. Problem 12-13 Project Cash Flows (LG12-3) You are evaluating a project for The Uitimate recreational tennis racket, guaranteed to correct that wimpy backhand. You estimate the sales price of The Uitimate to be $420 per unit and sales 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. Variable costs amount to $235 per unit and flxed costs are $100,000 per year. The project requires an intial investment of $171,000 in assets, which can be depreciated using bonus depreciation. The actual market value of these assets at the end of year 3 is expected to be $37,000. NWC requirements at the beginning of each year will be approximately 20 percent of the projected soles during the coming year. The tax rate is 21 percent and the required return on the project is 12 percent (Use SL depreciation toble) What will the cash flows for this project be? Note: Negotive amounts should be indicated by a minus sign. Round your answers to 2 decimal places