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year 0 and 2 are correct. i just need year 1 and 3 You are eva'uatng a propect for The Uitimate recreational tennis racket, guaranteed
year 0 and 2 are correct. i just need year 1 and 3
You are eva'uatng a propect for The Uitimate recreational tennis racket, guaranteed to correct that wimpy backhand. You estimale the sales price of The Uitimate to be $310 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 $180 per unit and fixed costs are $100,000 por yoar. The projoct requires an initial imvestment of $138.000 in astets. Which will be depreciated straight-ind to zero over the 3-year project sfe. The actual market value of these assets at the end of year 3 is expected to be $26,000. NWC reckuirements at the beginning of each year wit be approximately 25 percent of the projected sales during the coming year. The tax rate is 35 percent and the requred return on the progect is 11 percen. (Use SL. depreciation. fable) What will the cash flows for ths project be? (Negative amounts should be indicated by a minus sign. Do not round intermediate calculations. Round your final answers to 2 decimal places.) Step by Step Solution
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