You are evaluating a project for The Ultimate recreational tennis racket, guaranteed to correct poor backhand strokes. You estimate the sales price of an Ultimate racket to be $400 and sales volume to be: 2,000 units in year 1; 2,250 units in year 2; and 2,650 units in year 3. The project has a life of three years; that is, after year 3 no further revenues are anticipated from this particular product line. Variable costs amount to $225 per unit and fixed costs are $100,000 per year. The project requires an initial investment in machinery of $245,000. This machinery is in an asset class where the depreciation rate of 25 percent is done on a diminishing value method. The market value of the machinery each year must be equal to 20 percent of the next years sales. The firms tax rate is 34 percent and the appropriate discount rate is 9 percent at the end of year 3 is $55,000. The level of net working capital required Based on an NPV analysis, should the firm produce the Ultimate Tennis Racket? Explain all the steps taken to reach your conclusion: structuring of the problem and analysis should be explained numerical answer is not sufficient CC in words as well as given by calculations. Simply providing a