Problem $12-13$ Spreadsheet Problem: Project Cash Flows $($LG$12-3)$

You are evaluating a project for The Uitimate recreational tennis racket, guaranteed to correct that wimpy backhand. You

estimate the sales price of The Uitimate to be $$350$ per unit and sales volume to be $1,000$ units in year $1$; $1,250$ units in year

$2$; and $1,325$ units in year $3.$ The project has a $3-$year life. Variable costs amount to $$200$ per unit and fixed costs are

$$100,000$ per year. The project requires an initial investment of $$150,000$ in assets, which can be depreciated using bonus

depreciation. The actual market value of these assets at the end of year $3$ is expected to be $$30,000.$ NWC requirements at

the beginning of each year will be approximately $25$ percent of the projected sales during the coming year. The tax rate is

$21$ percent and the required return on the project is $10$ percent. $($Use SL depreciation table$)$

What will the cash flows for this project be$?$

Note: Negative amounts should be indicated by a minus sign. Round your answers to $2$ decimal places.