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 $192104 on research and development for the new clubs. The plant and equipment required will cost $2851580 and will be depreciated on a straight-line basis. The new clubs will also require an increase in net working capital of $128160 that will be returned at the end of the project. The annual OCF of the project will be $886944. The tax rate is 28 percent, and the cost of capital is 8 percent. What is the payback period for this project?

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M92874535

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