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 $400 per unit and sales volume to be 1,000 units year 1; 1,250 units in year 2; and 1,325 units in year 3. The project has a three-year life. Variable costs amount to $225 per unit and fixed costs are $100,000 per year. The project requires an initial investment of $165,000 in assets, which can be depreciated using bonus depreciation. The actual market value of these assets at the end of year 3 is expected to $35,000. NWC requirements at the beginning of each year will be approximately 20% of the projected sales during the coming year. The tax rate is 21% and the required return of the project is 10%. What will the cash flows for this project be? NPV? IRR? Given a 10% cost of capital, would you recommend pursuing project?