Silver bear golf (sbg) is a manufacturer of top quality golf clubs with a specialty of putters. currently, each putter they sell brings in $270 of revenue at a cost of $180. this past year, they sold 1,400 putters and they expect this number to grow each year by 10.5% until this model becomes obselete after 13 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 $200,000 and has the capacity to produce all the putters you want to sell per year at a unit cost of $137. there is no increased working capital need due to this new technology, and no value of the machine/technology after 13 years. what is the npv of investing in the new technology
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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 $270 of revenue at a cost of $180. this past year, they sold 1,400 putters and they expect this number to grow each year by 10.5% until this model becomes obselete after 13 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 $200,000 and has the capacity to produce all the putters you want to sell per year at a unit cost of $137. there is no increased working capital need due to this new technology, and no value of the machine/technology after 13 years. what is the npv of investing in the new technology