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Suppose that Calloway golf would like to capitalize on Phil Michelson winning the Open Championship in 2013 by releasing a new putter. The new product
Suppose that Calloway golf would like to capitalize on Phil Michelson winning the Open Championship in 2013 by releasing a new putter. The new product will require new equipment for $408,647.00 that will be depreciated using the 5-year MACRS schedule. The project will run for 2 years with the following forecasted numbers: Attempts Remaining: Infinity Calloway has a 14.00% cost of capital and a 40.00% tax rate. The firm expects to sell the equipment after 2 years for a NSV of $169,917.00 What is the project cash flow for year 2 ? (include the terminal cash flow here)
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