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 $135255 on research and development for the new clubs. The plant and equipment required will cost $2843972 and will be depreciated on a straight-line basis. The new clubs will also require an increase in net working capital of $125670 that will be returned at the end of the project. The annual OCF of the project will be $888623. The tax rate is 28 percent, and the cost of capital is 7 percent. What is the payback period for this project? (Do not round intermediate calculations and round your final answer to 2 decimal places.)

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M92866979

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