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You are the financlal analyst for a tennis racquet manufacturer. The company is considering using a graphite-like material in its tennis racquets. The company has

image text in transcribed You are the financlal analyst for a tennis racquet manufacturer. The company is considering using a graphite-like material in its tennis racquets. The company has estimated the information in the following table about the market for a racquet with the new materlal. The company expects to sell the racquet for six years. The equipment required for the project has no salvage value. The equipment will be depreciated straight-IIne to zero over the project's life. The required return for projects of this type is 12 percent, and the company has a 40 percent tax rate. Assume the company has other profitable ongoing operations that are sufficlent to cover any losses. Should you recommend the project? Calculate the NPV under each scenario. (Round the final answers to 2 declmal places. Negatlve amounts should be Indicated by a minus sign. Omit \$ sign in your response.)

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