Golf Carts

ProHub Comment

This is a straightforward financial calculation case testing basic math skills and ROI understanding. The candidate must structure the approach logically: calculate annual profits from unit sales, project over 3 years, then divide by initial investment. The case rewards candidates who not only calculate correctly but also contextualize the result by noting that 8% ROI barely exceeds inflation and exploring potential synergies.

Estimated Time 15 minutes
Difficulty Easy
Source PeterK
50 / 100
One of the top-3 golf equipment manufacturers, SwingTech, offers golf clubs, balls, gear, and apparel. They plan to invest $25M into launching a line of golf carts. What 3-year ROI should they expect from this investment?

Clarifying Information

  1. SwingTech plans to sell 6,000 golf carts per year at $15,000 each
  2. The projected profit margin of the new business line is 10%