Find the value of the npv for the project

Assignment Help Finance Basics
Reference no: EM131997137

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 $172695 on research and development for the new clubs. The plant and equipment required will cost $2850372 and will be depreciated on a straight-line basis. The new clubs will also require an increase in net working capital of $130497 that will be returned at the end of the project. The OCF of the project will be $896384. The tax rate is 30 percent, and the cost of capital is 12 percent. What is the NPV for this project?

Reference no: EM131997137

Questions Cloud

Group repertoire of violence : What explains changes in an armed group's repertoire of violence?
Forecast the incremental cash flows : Forecast the incremental cash flows resulting from the purchase of a widget machine on a year-by-year basis and draw them on a timeline.
Calculate the workbook cost in total and : Calculate the workbook cost in total and per student, assuming that 18, 20, or 22 students attempt to attend the course
President compared to the speaker of the house : Discuss the difference of the power, role, and the influence of the President compared to the Speaker of the House, the senate, majority leader
Find the value of the npv for the project : McGilla Golf has decided to sell a new line of golf clubs. The length of this project is seven years. The company has spent $172695 on research and development.
Poor academic performance in schools : If who were still alive, he might suggest that poor academic performance in schools could be attributed to a society
Why is the citizens united case : Why is the Citizens united case (in the Supreme Court) so important and what does it mean to US Politics?
How much was the firm earnings before taxes in given case : McCartney Inc. recently reported $15,000 of sales, $9,100 of operating costs other than depreciation, and $1,550 of depreciation.
Unitary systems and federal systems : What are the strengths of the unitary systems and federal systems? Discussion question

Reviews

Write a Review

Finance Basics Questions & Answers

  Financial reporting and analysis

Finance is about Gunns Ltd, a company in dealing with forestry products in Australia. The company has also been listed in Australian Stock Exchange. As many companies producing forestry products, even Gunns Ltd is facing various problems. Due to the ..

  A report on financial accounting

This report is specific for a core understanding for Financial Accounting and its relevant factors.

  Describe the types of financial ratios

Describe the types of financial ratios and other financial performance measures that are used during venture's successful life cycle.

  Differences between sole proprietorship and corporation

Briefly describe the major differences between a sole proprietorship and a corporation

  Prepare a cash budget statement

Calculate the expected value of the apartment in 20 years' time. What is the mortgage loan repayment at the beginning of each month

  What are the implied interest rates

What are the implied interest rates in Europe and the U.S.?

  State pricing theory and no-arbitrage pricing theory

State pricing theory and no-arbitrage pricing theory

  Small business administration

Identify the likely stage for each venture and describe the type of financing each venture is likely to be seeking and identify potential sources for that financing.

  Effect of financial leverage

The Effect of Financial Leverage and working capital management

  Evaluate the basis for the payment to the lender

Evaluate the basis for the payment to the lender and basis for the payment to the company-counterparty.

  Importance of opps, ipps, mpfs and dmepos

Research and discuss the differences and importance of : OPPS, IPPS, MPFS and DMEPOS.

  Time value of money

Time Value of Money project

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd