Problem 7-25 Scenario Analysis 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 5 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 14 percent and the company has a 22 percent tax rate. Market size Pessimistic 112,000 Expected Optimistic 122,000 134,000 Market share 18% 22% 24% Selling price $163 $168 $172 Variable costs per $105 $ 101 $ 98 unit Fixed costs per year $ 977,000 $922,000 Initial investment $ 1,660,000 $ 1,510,000 $ 892,000 $1,490,000 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.) Pessimistic Expected Optimistic