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McGilla Golf has decided to sell a new line of golf clubs. The clubs will sell for $829 per set and have a variable cost

McGilla Golf has decided to sell a new line of golf clubs. The clubs will sell for $829 per set and have a variable cost of $407 per set. The company has spent $11126 for a marketing study that determined the company will sell 5568 sets per year for seven years. The marketing study also determined that the company will lose sales of 957 sets of its high-priced clubs. The high-priced clubs sell at $1156 and have variable costs of $720. The company will also increase sales of its cheap clubs by 1006 sets. The cheap clubs sell for $404 and have variable costs of $203 per set. The fixed costs each year will be $915302. The company has also spent $108650 on research and development for the new clubs. The plant and equipment required will cost $2861749 and will be depreciated on a straight-line basis. The new clubs will also require an increase in net working capital of $126951 that will be returned at the end of the project. The tax rate is 29 percent, and the cost of capital is 9 percent. What is the annual OCF for this project?

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