Use the following information to answer the 6 questions that follow. If you thick that correct answer is missing from the multiple choices, then select the best available answer Titlist Inc., a leading manufacturer of golf equipment. Is currently evaluating a new product., high compressions golf balls. The balls would have a compression of over 110 and would thus only be suitable for golfers with swing speeds in What is the NPV of the project? $23, 312 $25, 419 $26.985 $29.322 excess of 120mph. However, such golfers would achieve even greater distance on their shots The ball is tentatively called The Bomb Tom Morrison, a recall finance graduate, has been asked to analyze The Bomb project and present his Undines to the company s executive committee The production line would be set up In an unused section of Titlist's main plant. The machinery is relatively Inexpensive, costing an estimated $240.000. Further. Titlist's Inventories would have to be increased by $25,000 to handle the new line. The machinery which falls Into class 39 with a 25% CCA rate, would be used for 2 years and have an expected salvage value of $25,000 at the end of this time Titlist's lax rate is 40% and Us weighted average cost of capital is 10% Earnings before- interest, taxes, depreciation and amortization (EBITDA) are expected to be $180.000 per year for each of the two 2 years. (EBITDA = Revenues - Cost o(goods Sold - Selling, General & Admin Expenses.) Assume that the purchase of the machine and increase in Inventory occur at the beginning of the first year of operations. (Tills Is shown as Year 0 In the table, below) Assume that operating cash flows occur at the end of each of the two years of operations (See the table of cash flows below.) Calculate the NPV of the project as of Year 0 What are the time 0 Initial cash outflows associated with starting up the project? $240,000 $25 000 $265,000 None of the above