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What is the npv for the project

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Question: McGilla Golf has decided to sell a new line of golf clubs. The length of this project is seven years. The company has spent $149,270 on research and development for the new clubs. The plant and equipment required will cost $2,830,255 and will be depreciated on a straight-line basis. The new clubs will also require an increase in net working capital of $126,396 that will be returned at the end of the project. The OCF of the project will be $898,004. The tax rate is 33 percent, and the cost of capital is 9 percent. What is the NPV for this project? (Negative amount should be indicated by a minus sign. Round your final answer to the nearest dollar amount. Omit the "tiny_mce_markerquot; sign and commas in your response. For example, $123,456.78 should be entered as 123457.)

Reference no: EM132761291

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