Question

A) McGilla Golf has decided to sell a new line of golf clubs.
The length of this project is seven years. The company has spent
$188569 on research and development for the new clubs. The plant
and equipment required will cost $2838154 and will be depreciated
on a straight-line basis. The new clubs will also require an
increase in net working capital of $125395 that will be returned at
the end of the project. The OCF of the project will be $810877. The
tax rate is 32 percent, and the cost of capital is 7 percent. What
is the NPV for this project? **(Negative amount should be
indicated by a minus sign. Round your final answer to the nearest
dollar amount. Omit the "$" sign and commas in your response. For
example, $123,456.78 should be entered as 123457.)**

**B)** 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.)**

Answer #1

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 $28122278 and will be depreciated
on a straight-line basis. The new clubs will also require an
increase in net working capital of $1313079 that will be returned
at the end of the project. The OCF of the project will be...

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 $28998117 and will be depreciated
on a straight-line basis. The new clubs will also require an
increase in net working capital of $1344335 that will be returned
at the end of the project. The OCF of the project will be...

McGilla Golf has decided to sell a new line of golf clubs. The
clubs will sell for $844 per set and have a variable cost of $434
per set. The company has spent $11448 for a marketing study that
determined the company will sell 5463 sets per year for seven
years. The marketing study also determined that the company will
lose sales of 973 sets of its high-priced clubs. The high-priced
clubs sell at $1095 and have variable costs of...

McGilla Golf has decided to sell a new line of golf clubs. The
clubs will sell for $754 per set and have a variable cost of $356
per set. The company has spent $12,305 for a marketing study that
determined the company will sell 5,228 sets per year for seven
years. The marketing study also determined that the company will
lose sales of 933 sets of its high-priced clubs. The high-priced
clubs sell at $1,094 and have variable costs of...

McGilla Golf has decided to sell a new line of golf clubs. The
clubs will sell for $802 per set and have a variable cost of $416
per set. The company has spent $14,126 for a marketing study that
determined the company will sell 5,523 sets per year for seven
years. The marketing study also determined that the company will
lose sales of 960 sets of its high-priced clubs. The high-priced
clubs sell at $1,120 and have variable costs of...

McGilla Golf has decided to sell a new line of golf clubs. The
clubs will sell for $834 per set and have a variable cost of $350
per set. The company has spent $19240 for a marketing study that
determined the company will sell 5233 sets per year for seven
years. The marketing study also determined that the company will
lose sales of 941 sets of its high-priced clubs. The high-priced
clubs sell at $1125 and have variable costs of...

11.2a McGilla Golf has decided to sell a new line of golf clubs.
The clubs will sell for $754 per set and have a variable cost of
$358 per set. The company has spent $17,603 for a marketing study
that determined the company will sell 5,470 sets per year for seven
years. The marketing study also determined that the company will
lose sales of 961 sets of its high-priced clubs. The high-priced
clubs sell at $1,197 and have variable costs...

3. McGilla Golf has decided to sell a new line of golf clubs.
The clubs will sell for $700 per set and have a variable cost of
$320 per set. The company has spent $150,000 for a marketing study
that determined the company will sell 48,000 sets per year for
seven years. The marketing study also determined that the company
will lose sales of 11,000 sets of its high-priced clubs. The
high-priced clubs sell at $1,100 and have variable costs...

McGilla Golf has decided to sell a new line of golf clubs. The
clubs will sell for $845 per set and have a variable cost of $405
per set. The company has spent $300,000 for a marketing study that
determined the company will sell 69,400 sets per year for seven
years. The marketing study also determined that the company will
lose sales of 13,000 sets of its high-priced clubs. The high-priced
clubs sell at $1,215 and have variable costs of...

McGilla Golf has decided to sell a new line of golf clubs. The
clubs will sell for $820 per set and have a variable cost of $420
per set. The company has spent $152,000 for a marketing study that
determined the company will sell 56,000 sets per year for seven
years. The marketing study also determined that the company will
lose sales of 9,700 sets of its high-priced clubs. The high-priced
clubs sell at $1,120 and have variable costs of...

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