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22b) McGilla Golf has decided to sell a new line of golf clubs. The clubs will sell for $782 per set and have a variable

22b) McGilla Golf has decided to sell a new line of golf clubs. The clubs will sell for $782 per set and have a variable cost of $411 per set. The company has spent $194974 for a marketing study that determined the company will sell 5284 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 $1134 and have variable costs of $673. The company will also increase sales of its cheap clubs by 1157 sets. The cheap clubs sell for $408 and have variable costs of $247 per set. The fixed costs each year will be $864594. The company has also spent $119911 on research and development for the new clubs. The plant and equipment required will cost $2888522 and will be depreciated on a straight-line basis. The new clubs will also require an increase in net working capital of $125840 that will be returned at the end of the project. The tax rate is 33 percent, and the cost of capital is 10 percent. What is the sensitivity of the NPV to changes in the quantity of the new clubs sold?

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