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Suppose that Calloway golf would like to capitalize on Phil Michelson winning the Open Championship...

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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 $420,557.00 that will be depreciated using the 5-year MACRS schedule. The project will run for 2 years with the following forecasted numbers: Putter price Units sold COGS Selling and Administrative Year 1 $63.88 19,556.00 39.00% of sales 21.00% of sales Year 2 $63.88 11,270.00 39.00% of sales 21.00% of sales Calloway has a 15.00% cost of capital and a 36 0096 tax rate. The firm expects to sell the equipment after 2 years for a NSV of S155, 79100. What is the NPV of the project

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