McGilla Golf has decided to sell a new line of golf clubs. The clubs will sell for 750 per set and have a variable cost of 330 per set. The company has spent 150,000 for a marketing study that determined the company will sell 50,000 sets per year for 7 years. The marketing study also determined that the company will lose sales of 11,000 sets of its high-priced clubs. The high-priced clubs sell at 1300 and have variable costs of 650. The company will also increase sales of its cheap clubs by 9,500 sets. The cheap clubs sell for 400 and have variable costs of 180 per set. The fixed costs each year will be 8,200,000. The company has also spent 1,000,000 on research and development for the new clubs. The plant and equipment required will cost 18,130,841 and will be depreciated on a straight-line basis. The new clubs will also require an increase in net working capital of 1,250,000 that will be returned at the end of the project. The tax rate is 40 per cent, and the cost of capital is 10 per cent.

Requirement 1: Calculate the payback period. (Do not round intermediate steps. Round your answer to 3 decimal places (e.g., 32.161). The program includes a margin of error of +/- 1%.) Payback period year(s)

Requirement 2: Calculate the NPV. (Do not round intermediate steps. Round your answer to 2 decimal places (e.g., 32.16). The program includes a margin of error of +/- 1%.) NPV Requirement

3: Calculate the IRR. (Do not round intermediate steps. Round your answer to 2 decimal places (e.g., 32.16). The program includes a margin of error of +/- 1%.) IRR %