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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 $404,186.00 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 13.00% cost of capital and a 36.00% tax rate. The firm expects to sell the equipment after 2 years for a NSV of $161,131.00. What is the NPV of the project
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