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 5 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 14 percent and the company has a 25 percent tax rate. Pessimistic Expected Optimistic Market size 115,000 125,000 137,000 Market share 18% 22% 24% Selling price $ 165 $ 170 $ 174 Variable costs per $ 108 $ 104 $ 101 unit Fixed costs per $ 980,000 $ 925,000 $ 895,000 year Initial investment $1,675,000 $1,525,000 $1,505,000 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., 32.16.) - Pessimistic Expected Optimistic BE 3 of 7