McGilla Golf has decided to sell a new line of golf clubs. The clubs will sell for $925 per set and have a variable cost of $480 per set. The company spent $150,000 on a marketing study that determined it will sell 75,000 games per year for seven years. The marketing study also determined that the company will lose sales of 8,800 sets a year of its high-priced clubs. High-priced clubs sell for $1,325 and have variable costs of $640. The company will also increase sales of its cheap clubs by 11,000 sets a year. Cheap clubs sell for $385 and have variable costs of $160 per set. Fixed costs each year will be $14.65 million. The company has also spent $1 million on research and development for the new clubs. The required plant and equipment will cost $30.1 million and will be depreciated using the straight-line method. The new clubs will also require an increase in net working capital of $3.5 million that will be returned at the end of the project. The tax rate is 23 percent and the cost of capital is 14 percent. Calculate the payback period, NPV and IRR.

PLEASE I JUST WANT TO KNOW HOW THAT VALUE IS OBTAINED, I DON'T WANT TO KNOW THE PAYBACK, OR THE IRR, I JUST WANT TO KNOW HOW THAT VALUE IS OBTAINED Relevant contribution = 29,822,000

JUST DO WHAT I ASK YOU TO EXPLAIN TO ME HOW TO OBTAIN Relevant contribution = 29,822,000, BUT DO THE OPERATION, I WANT TO NOTE WHAT YOU ADD AND WHAT YOU SUBTRACT TO OBTAIN THOSE VALUES.

PUT IN THE DATA, THEN ADD, SUBTRACT OR WHATEVER AND SHOW HOW YOU OBTAINED THE Relevant contribution = 29,822,000

Don't solve the problem, because the problem has already been solved, just do what I ask of you.