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 21 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., 32.16.)

Market size Market share Selling price Variable costs per unit Fixed costs per year Initial investment Pessimistic Expected Optimistic 116,000 126,000 138,000 19% 23% 25% $ 166 $ 171 $ 175 $ 109 $ 105 $ 102 $ $ $ 981,000 $1,986,000 $ 926,000 $ 896,000 $1,836,000 $1,816,000 $ -890,112.00 Pessimistic Expected Optimistic