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10 9 McGila Golf has decided to sell a new line of golf clubs. The clubs wil sell for $925 per set and have a

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10 9 McGila Golf has decided to sell a new line of golf clubs. The clubs wil sell for $925 per set and have a variable cost of $455 per set. The company has spent $260,000 for a marketing study that determined the company will sell 66,000 sets per year for seven years. The marketing study also determined that the company will lose sales of 8.900 sets per year of its high-priced clubs. The high-priced clubs sell at $1355 and have variable costs of $675. The company will also increase sales of its cheap clubs by 11400 sets per year. The cheap clubs sell for $364 and have variable costs of $159 per set. The fixed costs each year wil be $14,950,000. The company has also spent $2.100.000 on research and development for the new clubs. The plant and equipment required will cost $50,300,000 and will be depreciated on a straight-line basis. The new clubs will also require an increase in net working capital of $3.925,000 that will be returned at the end of the project. The tax rate is 21 percent, and the cost of capital is t3 percent Calculate the Time O cash flow (Enter your answer as a positive value. Do not round Intermediate calculations and round your answer to the nearest whole numbere.g. 32.) Time how Construct the proforma income statement (Do not round intermediate calculations and round your answers to the nearest whole number, e.g. 32.) Faedo Depreciation EBIT Calculate the payback period, the NPV, and the IRR (Enter your IRR as a percent. Do not round Intermediate calculations and round your answers to 2 decimal places, e.g. 32.16) an hemale from 10 9 McGila Golf has decided to sell a new line of golf clubs. The clubs wil sell for $925 per set and have a variable cost of $455 per set. The company has spent $260,000 for a marketing study that determined the company will sell 66,000 sets per year for seven years. The marketing study also determined that the company will lose sales of 8.900 sets per year of its high-priced clubs. The high-priced clubs sell at $1355 and have variable costs of $675. The company will also increase sales of its cheap clubs by 11400 sets per year. The cheap clubs sell for $364 and have variable costs of $159 per set. The fixed costs each year wil be $14,950,000. The company has also spent $2.100.000 on research and development for the new clubs. The plant and equipment required will cost $50,300,000 and will be depreciated on a straight-line basis. The new clubs will also require an increase in net working capital of $3.925,000 that will be returned at the end of the project. The tax rate is 21 percent, and the cost of capital is t3 percent Calculate the Time O cash flow (Enter your answer as a positive value. Do not round Intermediate calculations and round your answer to the nearest whole numbere.g. 32.) Time how Construct the proforma income statement (Do not round intermediate calculations and round your answers to the nearest whole number, e.g. 32.) Faedo Depreciation EBIT Calculate the payback period, the NPV, and the IRR (Enter your IRR as a percent. Do not round Intermediate calculations and round your answers to 2 decimal places, e.g. 32.16) an hemale from

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