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McGilla Golf has decided to sell a new line of golf clubs. The clubs will sell for $837 per set and have a variable cost

McGilla Golf has decided to sell a new line of golf clubs. The clubs will sell for $837 per set and have a variable cost of $397 per set. The company has spent $15164 for a marketing study that determined the company will sell 5534 sets per year for seven years. The marketing study also determined that the company will lose sales of 964 sets of its high-priced clubs. The high-priced clubs sell at $1124 and have variable costs of $686. The company will also increase sales of its cheap clubs by 1187 sets. The cheap clubs sell for $457 and have variable costs of $219 per set. The fixed costs each year will be $918451. The company has also spent $113983 on research and development for the new clubs. The plant and equipment required will cost $2898437 and will be depreciated on a straight-line basis. The new clubs will also require an increase in net working capital of $128534 that will be returned at the end of the project. The tax rate is 31 percent, and the cost of capital is 9 percent. What is the annual OCF for this project?

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