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 $414,867.00 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	$63.28	$63.28
Units sold	18,068.00	11,690.00
COGS	40.00% of sales	40.00% of sales
Selling and Administrative	21.00% of sales	21.00% of sales

Calloway has a 12.00% cost of capital and a 39.00% tax rate. The firm expects to sell the equipment after 2 years for a NSV of $143,998.00.

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

AND

What is the NPV of the project?