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Morecambe Golf Plc has decided to sell a new line of golf clubs. The clubs will sell for 8 0 0 per set and have
Morecambe Golf Plc has decided to sell a new line of golf clubs. The clubs will
sell for per set and have a variable cost of per set. The company
has spent on a marketing study that determined the company will
sell sets per year for four years. The fixed costs each year will be
The company has also spent on research and
development for the new clubs. The plant and equipment required will cost
and will be depreciated on a straightline basis to the book value
of zero. The new clubs will also require an increase in net working capital of
which will be returned at the end of the project. The tax rate is
percent, and the cost of capital is percent.Calculate the total initial cost of the project
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