Problem 12-13 Project Cash Flows (LG12-3) You are evaluating a project for The Ultmate recreational tennis racket, guatanteed to correct that wimpy backhand. You esumate the sales price of The Ulimate to be $320 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. Varlable costs amount to $185 per unit and fixed costs are $100,000 per year. The project requtres an inttial investment of $141,000 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 $27,000. NWC requirements at the beginning of each year will be approximately 20 percent of the projected sales during the coming year. The tax rate is 21 percent and the required return on the project is 10 percent. (Use SL depreciation table) What will the cash flows for this project be? Note: Negative amounts should be Indicated by a minus sign. Round your onswers to 2 decimal places. Problem 12-13 Project Cash Flows (LG12-3) You are evaluating a project for The Uitmate recreational tennis racket, guaranteed to correct that wimpy backhand, You estimate the sales price of The Uitimate to be $320 per unit and sales volume to be 1,000 units in year 1,1.250 units in year 2 and 1,325 unith in year 3. The project has a 3-year life. Variable costs amount to $185 per unit and fixed costs are $100,000 per year. The project requiret an iniwal investment of $141,000 in assets, which can be depreclated using bonus depreciation. The actual matker value of these assets ot the end or year 3 is expected to be $27,000. NWC requirements at the beginning of each year will be approximately 20 percent of the projected sales during the coming year. The tak rate is 21 percent and the required retum on the project to to percent ruse si deprectavon tabie) What will the cash flows for this project be? Note: Negative omounts should be Indicated by a minus algn. Round your answers to 2 decimal pinced