Decided to sell new line of golf clubs

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Reference no: EM131916800

McGilla Golf has decided to sell a new line of golf clubs. The length of this project is seven years. The company has spent $165149 on research and development for the new clubs. The plant and equipment required will cost $2887441 and will be depreciated on a straight-line basis. The new clubs will also require an increase in net working capital of $126828 that will be returned at the end of the project. The OCF of the project will be $825527. The tax rate is 31 percent, and the cost of capital is 11 percent. What is the NPV for this project?

Reference no: EM131916800

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