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 $404,656.00 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 Year 2 $60.53 $60.53 19,891.00 10,593.00 38.00% of sales 38.00% of sales 19.00% of sales 19.00% of sales Calloway has a 12.00% cost of capital and a 37.00% tax rate. The firm expects to sell the equipment after 2 years for a NSV of $151,528.00. What is the project cash flow for year 2? (include the terminal cash flow here) Answer Format: Currency: Round to: 2 decimal places
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