Depreciated on a straight-line basis

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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 $1704685 on research and development for the new clubs. The plant and equipment required will cost $28597768 and will be depreciated on a straight-line basis. The new clubs will also require an increase in net working capital of $1336187 that will be returned at the end of the project. The OCF of the project will be $8539603. The tax rate is 29 percent, and the cost of capital is 12 percent. What is the NPV for this project?

Negative amount should be indicated by a minus sign. Round your final answer to the nearest dollar amount. Omit the "$" sign and commas in your response. For example, $123,456.78 should be entered as 123457.)

Hint: there is a sunk cost number in this question.

Reference no: EM13937287

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