Final answer:
Forecasting annual cash inflows for a new golf club involves analyzing membership fee scenarios and economic conditions, considering both the need for effective member recruitment and the market-wide cost-benefit analysis behavior of potential members.
Step-by-step explanation:
The committee of a new golf club setting the annual membership fee must consider various membership fee scenarios and economic conditions to forecast annual cash inflows. People join membership interest groups voluntarily or out of necessity. Voluntary groups must actively recruit and retain members as their funding, legitimization, and media credibility depend on an adequate membership base.
Similarly to how voters perform a cost-benefit analysis when deciding on community expenditures, potential members weigh the benefits of joining against the cost of membership fees. Interest groups use various methods to recruit members which now include media savvy marketing techniques to appeal to a wider audience and increase their membership base.
This understanding of member recruitment and retention, along with analyzing external economic factors, is essential for the golf club committee to appropriately set and adjust membership fees to maximize cash inflows while maintaining a healthy member community.