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You are evaluating a project for The Ultimate recreational tenints racket, guaranteed to correct that wimpy backhand You estimate the sales price of The Uitimate

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You are evaluating a project for The Ultimate recreational tenints 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. Vattable costs amount to $235 per unit and fixed costs are $100,000 per year. The project requires an initil investment of $171,000in assets, which can be depreciated using bonus depreciation. The actual market value of these assets ot the end of year 3 is expected to be $37,000. NWC requitements 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 retum on the project is 12 percent. (Use SL deprectation.table) What will the cash fows for this project be? Note: Negative amounts should be Indicnted by a minus sign. Round your answers to 2 decimal ploces. You are evaluating a project for The Ultmate 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 fixed costs are $100,000 per year. The project requires an inital investment of $171,000 in assets, which can be depteciated using bonus depreciation. The actual market value of these assets at the end of year 3 is expected to be $37,000. NWC requirements ot the beginning of each year wili 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 12 percent. (Use Si deptesiation table) What will the cosh flows for this project be? Note: Negative amounts should be indicated by a minus sign. Round your answers to 2 decimal ploces

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