c11-q22a

McGilla Golf has decided to sell a new line of golf clubs. The clubs will sell for $842 per set and have a variable cost of $375 per set. The company has spent $158,652 for a marketing study that determined the company will sell 5,544 sets per year for seven years. The marketing study also determined that the company will lose sales of 923 sets of its high-priced clubs. The high-priced clubs sell at $1,078 and have variable costs of $664. The company will also increase sales of its cheap clubs by 1,015 sets. The cheap clubs sell for $445 and have variable costs of $209 per set. The fixed costs each year will be $928,009. The company has also spent $104,801 on research and development for the new clubs. The plant and equipment required will cost $2,826,079 and will be depreciated on a straight-line basis. The new clubs will also require an increase in net working capital of $126,875 that will be returned at the end of the project. The tax rate is 28 percent, and the cost of capital is 12 percent. What is the sensitivity of the NPV to changes in the price of the new clubs