Question
McGilla Golf has decided to sell a new line of golf clubs. The length of this project is seven years. The company has spent $180518
McGilla Golf has decided to sell a new line of golf clubs. The length of this project is seven years. The company has spent $180518 on research and development for the new clubs. The plant and equipment required will cost $2849661 and will be depreciated on a straight-line basis. The new clubs will also require an increase in net working capital of $125841 that will be returned at the end of the project. The annual OCF of the project will be $861963. The tax rate is 33 percent, and the cost of capital is 12 percent. What is the payback period for this project? only round final answer
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