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

clubs will sell for $$865$ per set and have a variable cost of $$425$

per set. The company has spent $$340,000$ for a marketing study that

determined the company will sell $70,600$ sets per year for seven

years. The marketing study also determined that the company will

lose sales of $13,800$ sets of its high$-$priced clubs. The high$-$priced

clubs sell at $$1,235$ and have variable costs of $$695.$ The company

will also increase sales of its cheap clubs by $15,800$ sets. The

cheap clubs sell for $$455$ and have variable costs of $$245$ per set.

The fixed costs each year will be $$10,750,000.$ The company has also

spent $$2,900,000$ on research and development for the new clubs. The

plant and equipment required will cost $$39,200,000$ and will be

depreciated on a straight$-$line basis. The new clubs will also

require an increase in net working capital of $$3,600,000$ that will

be returned at the end of the project. The tax rate is $24$ percent,

and the cost of capital is $12$ percent. a$.$ Calculate the payback

period. $($Do not round intermediate calculations and round your

answer to $3$ decimal places, e$.$g$.,32\mathrm{.}161.)$ b$.$ Calculate the NPV$.$

$($Do not round intermediate calculations and round your answer to $2$

decimal places, e$.$g$.,32\mathrm{.}16.)$ c$.$ Calculate the IRR. $($Do not round

intermediate calculations and enter your answer as a percent

rounded to $2$ decimal places, e$.$g$.,32\mathrm{.}16.)$ a$.$ Payback period$----$

years b$.$ NPV $------$ c$.$ IRR $-----\%$