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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 will require new equipment for $412,898.00 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 15.00% cost of capital and a 39.00% tax rate. The firm expects to sell the equipment after 2 years for a NSV of $155,088.00. What is the NPV of the project? Answer format: Currency: Round to: 2 decimal places. 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 $400,000 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 15% cost of capital and a 40% tax rate. The firm expects to sell the equipment after 2 years for a NSV of $175,000. What is the NPV of the putter project? SOLUTION: NPV=(1+r)1FCF1+(1+r)2FCF2+FCF0NPV=(1.15)1$320,000+(1.15)2$370,200+$400,000=$158,185.26 We add in the NSV from selling the equipment at year 2. USING A FINANCIAL CALCULATOR: CF0=400000,C01=320000,C02=370200,I=15,CPTNPV=158185.26