Silver Bear Golf (SBG) is a manufacturer of top quality golf clubs with a specialty of putters. Currently, each putter t

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Silver Bear Golf (SBG) is a manufacturer of top quality golf
clubs with a specialty of putters. Currently, each putter they sell
brings in $230 of revenue at a cost of $170. This past year, they
sold 1,100 putters and they expect this number to grow each year by
13.5% until this model becomes obselete after 12 more years. The
foreman at the SBG factory recently brought to your attention a new
technology that could lower the cost of production. This technology
requires an upfront fixed investment of $138,000 and has the
capacity to produce all the putters you want to sell per year at a
unit cost of $144. There is no increased working capital need due
to this new technology, and no value of the machine/technology
after 12 years. What is the NPV of investing in the new technology?
Ignore taxes and assume a discount rate of 7.5%. (Think
incrementally; the difference between the world without and with
this new technology! Also, ignoring taxes will be a big help if you
think right. You are strongly encouraged to use a spreadsheet.)
(Enter just the number in dollars without the $ sign or a comma and
round off decimals to the closest integer, i.e., rounding $30.49
down to $30 and rounding $30.50 up to $31.)