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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

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 $810 per set and have a variable cost of $370
per set. The company has spent $230,000 for a marketing study that
determined the company will sell 67,300 sets per year for seven
years. The marketing study also determined that the company will
lose sales of 11,600 sets of its high-priced clubs. The high-priced
clubs sell at $1,180 and have variable costs of $640. The company
will also increase sales of its cheap clubs by 13,600 sets. The
cheap clubs sell for $400 and have variable costs of $190 per set.
The fixed costs each year will be $10,200,000. The company has also
spent $1,800,000 on research and development for the new clubs. The
plant and equipment required will cost $38,100,000 and will be
depreciated on a straight-line basis. The new clubs will also
require an increase in net working capital of $2,500,000 that will
be returned at the end of the project. The tax rate is 23 percent,
and the cost of capital is 11 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.,32.16.)

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