You are a financial analyst for a tennis racket manufacturer. the company is considering using a graphite-like material it is 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 4 years. The equipment required for the project will be depreciated on a straight-line basis and has no salvage value. The required return for a project of this type is 12 percent and the company has a 22 percent tax rate.

	Pessimistic	expected	optimistic
Market size	117,000	127,000	139,000
market share	20%	24%	26%
selling price	$162	$167	$171
variable cost per unit	$110	$106	$103
fixed cost per year	$982,000	$927,000	$897,000
initial investment	$1,378,000	$1,228,000	$1,208,000

Calculate the NPV for each case of this project. assume a negative taxable income generates a tax credit.

pessimistic
expected