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You are evaluating a project for The Ultimate recreational tennis racket, guaranteed to correct that wimpy backhand. You estimate the sales price of The Ultimate
You are evaluating a project for The Ultimate recreational tennis racket, guaranteed to correct that wimpy backhand. You estimate the sales price of The Ultimate to be $ per unit and sales volume to be units in year ; units in year ; and units in year The project has a year life. Variable costs amount to $ per unit and fixed costs are $ per year. The project requires an initial investment of $ in assets, which can be depreciated using bonus depreciation. The actual market value of these assets at the end of year is expected to be $ NWC requirements at the beginning of each year will be approximately percent of the projected sales during the coming year. The tax rate is percent and the required return on the project is 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 answers to decimal places.
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