McGilla Golf has decided to sell a new line of golf clubs. The length of this...
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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 $1110000 on research and development for the new clubs. The plant and equipment required will cost $28842213 and will be depreciated on a straight-line basis. The new clubs will also require an increase in net working capital of $1271594 that will be returned at the end of the project. The OCF of the project will be $8397763. The tax rate is 32 percent. What is the IRR for this project? (Enter your answer as a percentage, omit the "%" sign in your response, and round your answer to 2 decimal places. For example, 0.12345 or 12.345% should be entered as 12.35.) McGilla Golf has decided to sell a new line of golf clubs. The length of this project is seven years. The company has spent $1110000 on research and development for the new clubs. The plant and equipment required will cost $28842213 and will be depreciated on a straight-line basis. The new clubs will also require an increase in net working capital of $1271594 that will be returned at the end of the project. The OCF of the project will be $8397763. The tax rate is 32 percent. What is the IRR for this project? (Enter your answer as a percentage, omit the "%" sign in your response, and round your answer to 2 decimal places. For example, 0.12345 or 12.345% should be entered as 12.35.)
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Related Book For
Corporate Finance
ISBN: 978-0077861759
10th edition
Authors: Stephen Ross, Randolph Westerfield, Jeffrey Jaffe
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