New clubs will also require increase in net working capital

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Reference no: EM131076001

McGilla Golf has decided to sell a new line of golf clubs. The length of this project is seven years. The company has spent $1919288 on research and development for the new clubs. The plant and equipment required will cost $28608439. The new clubs will also require an increase in net working capital of $1287669 that will be returned at the end of the project. The OCF of the project will be $8073497. The tax rate is 34 percent, and the cost of capital is 8 percent. What is the NPV for this project?

Reference no: EM131076001

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