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You are the financial analyst for a tennis racket manufacturer. The company is considering using a graphitelike materlal in its tennis rackets. The company has
You are the financial analyst for a tennis racket manufacturer. The company is considering using a graphitelike materlal in its tennis rackets. The company has estimated the information in the following table about the market for a racket with the new materlal. 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 projects of this type is 12 percent and the company has a 24 percent tax rate. Calculate the NPV for each case for this project. Assume a negative taxable income generates a tax credit. (A negatlve amount should be Indlcated by a minus sign. Do not round Intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.)
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