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Silver Bear Golf ( SBG ) is a manufacturer of top quality golf clubs with a specialty of putters. Currently, each putter they sell brings
Silver Bear Golf SBG is a manufacturer of top quality golf clubs with a specialty of putters. Currently, each putter they sell brings in $ of revenue at a cost of $ This past year, they sold putters and they expect this number to grow each year by until this model becomes obselete after more years. The foreman at the SBG factory recently brought to your attention a new technology that could lower the cost of production. This technology requires an upfront fixed investment of $ and has the capacity to produce all the putters you want to sell per year at a unit cost of $ There is no increased working capital need due to this new technology, and no value of the machinetechnology after years. What is the NPV of investing in the new technology? Ignore taxes and assume a discount rate of
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