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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 $407,215.00 that will be depreciated using the 5-year MACRS schedule. The project will run for 2 years with the following forecasted numbers: Year 1 $60.73 19,220.00 40.00% of sales 20.00% of sales Year 2 $60.73 0,471.00 40.00% of sales 20.00% of sales Putter price Units sold Selling and Administrative 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 $152,272.00. What is the project cash flow for year 1
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