McGilla Golf has decided to sell a new line of golf clubs. The length of this...

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Finance

McGilla Golf has decided to sell a new line of golf clubs. Thelength of this project is seven years. The company has spent$138237 on research and development for the new clubs. The plantand equipment required will cost $2829364 and will be depreciatedon a straight-line basis. The new clubs will also require anincrease in net working capital of $127415 that will be returned atthe end of the project. The OCF of the project will be $811598. Thetax rate is 32 percent, and the cost of capital is 7 percent. Whatis the NPV for this project?

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