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 $421,985.00 that will be depreciated using the 5-year MACRS schedule. The project will run for 2 years with the following forecasted numbers:

Calloway has a 14.00% cost of capital and a 37.00% tax rate. The firm expects to sell the equipment after 2 years for a NSV of $151,069.00.

What is the NPV of the project?

\begin{tabular}{lrr} & Year 1 & Year 2 \\ \hline Putter price & $62.66 & $62.66 \\ \hline Units sold & 18,789.00 & 11,352.00 \\ \hline COGS & 42.00% of sales & 42.00% of sales \\ \hline Selling and Administrative & 21.00% of sales & 21.00% of sales \end{tabular}