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You are the financial analyst for a tennis racket manufacturer. - The company is considering using a graphitelike material in its tennis rackets. - The
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 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. $351;677$1,171,964;$2,825,121$465,161;$1,316,401;$2,812,662$350,210;$1,665,223;$2,112,137
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