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 $6$ 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 $13$ percent and the company has a $23$ percent tax rate.

Pessimistic Expected Optimistic

Market size $113,000123,000135,000$

Market share $19\%23\%25\%$

Selling price $ $164$ $ $169$ $ $173$

Variable costs per unit $ $106$ $ $102$ $ $99$

Fixed costs per year $ $978,000$ $ $923,000$ $ $893,000$

Initial investment $ $1,968,000$ $ $1,818,000$ $ $1,798,000$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 $6$ 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 $13$ percent and the company has a

$23$ percent tax rate.

Calculate the NPV for each case for this project. Assume a negative taxable income

generates a tax credit. $($A negative amount should be indicated by a minus sign. Do

not round intermediate calculations and round your answers to $2$ decimal places, e$.$g$.,$

$32\mathrm{.}16.)$