McGilla Golf has decided to sell a new line of golf clubs. The company would like to

know the sensitivity of NPV to changes in the price of the new clubs and the quantity of

new clubs sold. The clubs will sell for $$825$ per set and have a variable cost of $$385$ per

set. The company has spent $$260,000$ for a marketing study that determined the

company will sell $68,200$ sets per year for seven years. The marketing study also

determined that the company will lose sales of $12,200$ sets of its high$-$priced clubs. The

high$-$priced clubs sell at $$1,195$ and have variable costs of $$655.$ The company will also

increase sales of its cheap clubs by $14,200$ sets. The cheap clubs sell for $$415$ and have

variable costs of $$205$ per set. The fixed costs each year will be $$10,350,000.$ The

company has also spent $$2,100,000$ on research and development for the new clubs.

The plant and equipment required will cost $$38,400,000$ and will be depreciated on a

straight$-$line basis. The new clubs will also require an increase in net working capital of

$$2,800,000$ that will be returned at the end of the project. The tax rate is $21$ percent, and

the cost of capital is $9$ percent. What is the sensitivity of the NPV to each of these

variables? $($Do not round intermediate calculations and round your answers to $2$

decimal places, e$.$g$.,32\mathrm{.}16.)$

$NP\frac{V}{}P$

$NP\frac{V}{}Q$