You are the financial analyst for a tennis racket manufacturer. The company is considering using a graphitelike material in its tennis rackets. The company has estimated the information in the following table about the market for a racket with the new material. The company expects to sell the racket for four years. The equipment required for the project has no salvage value and will be depreciated on a straight-line basis. The required return for projects of this type is 12 percent, and the company has a 34 percent tax rate. Pessimistic Expected Optimistic Market size 124,000 139,000 164,000 Market share 21 % 24 % 26 % Selling price $ 141 $ 146 $ 152 Variable costs per unit $ 95 $ 90 $ 89 Fixed costs per year $ 956,000 $ 911,000 $ 881,000 Initial investment $ 1,545,000 $ 1,168,000 $ 1,100,000

Calculate the NPV for each case for this project. Assume a negative taxable income generates a tax credit. (A negative answer should be indicated by a minus sign. Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.)

Pessimistic $ =

Expected $ =

Optimistic $=