Require an increase in net working capital

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Reference no: EM13937646

McGilla Golf has decided to sell a new line of golf clubs. The length of this project is seven years. The company has spent $1796356 on research and development for the new clubs. The plant and equipment required will cost $28141541 and will be depreciated on a straight-line basis. The new clubs will also require an increase in net working capital of $1269479 that will be returned at the end of the project. The OCF of the project will be $8169374. The tax rate is 34 percent, and the cost of capital is 7 percent.

What is the NPV for this project?

Reference no: EM13937646

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