Mcgilla golf has decided to sell a new line of golf clubs, Ask an Expert

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McGilla Golf has decided to sell a new line of golf clubs. The length of this project is seven years. The company has spent $1424221 on research and development for the new clubs. The plant and equipment required will cost $28559019 and will be depreciated on a straight-line basis. The new clubs will also require an increase in net working capital of $1349016 that will be returned at the end of the project. The annual OCF of the project will be $8299384. The tax rate is 31 percent, and the cost of capital is 11 percent. What is the payback period for this project?

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M91608340

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