McGilla Golf has decided to sell a new line of golf clubs. The clubs will sell for $$830$ per

set and have a variable cost of $$390$ per set. The company has spent $$270,000$ for a

marketing study that determined the company will sell $68,500$ sets per year for seven

years. The marketing study also determined that the company will lose sales of $12,400$

sets of its high$-$priced clubs. The high$-$priced clubs sell at $$1,200$ and have variable costs

of $$660.$ The company will also increase sales of its cheap clubs by $14,400$ sets. The

cheap clubs sell for $$420$ and have variable costs of $$210$ per set. The fixed costs each

year will be $$10,400,000.$ The company has also spent $$2,200,000$ on research and

development for the new clubs. The plant and equipment required will cost

$$38,500,000$ and will be depreciated on a straight$-$line basis. The new clubs will also

require an increase in net working capital of $$2,900,000$ that will be returned at the end

of the project. The tax rate is $22$ percent, and the cost of capital is $10$ 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$.,32\mathrm{.}16.)$