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 $419,538.00 that will be depreciated using the 5-year MACRS schedule. The project will run for 2 years with the following forecasted numbers:

	Year 1	Year 2
Putter price	$64.38	$64.38
Units sold	19,948.00	10,443.00
COGS	41.00% of sales	41.00% of sales
Selling and Administrative	21.00% of sales	21.00% of sales

Calloway has a 12.00% cost of capital and a 38.00% tax rate. The firm expects to sell the equipment after 2 years for a NSV of $129,215.00.

What is the project cash flow for year 1?

What is the project cash flow for year 2? (include the terminal cash flow here)

What is the NPV of the project?