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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
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 $410,803.00 that will be depreciated using the 5-year MACRS schedule. The project will run for 2 years with the following forecasted numbers: Putter price Units sold COGS Year 1 $60.57 19,592.00 Year 2 $60.57 11,253.00 40.00% of sales 40.00% of sales Selling and Administrative 18.00% of sales 18.00% of sales Calloway has a 15.00% cost of capital and a 38.00% tax rate. The firm expects to sell the equipment after 2 years for a NSV of $164,501.00. What is the NPV of the project? Answer Format: Currency: Round to: 2 decimal places. Enter Answer Here...
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