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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

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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 the price of the new clubs and the quantity of new clubs sold. The clubs will sell for $780 per set and have a variable cost of $380 per set. The company has spent $148,000 for a marketing study that determined the company will sell 52,000 sets per year for seven years. The marketing study also determined that the company will lose sales of 9,300 sets of its high-priced clubs. The high-priced clubs sell at $1,080 and have variable costs of $680. The company will also increase sales of its cheap clubs by 10,800 sets. The cheap clubs sell for $420 and have variable costs of $220 per set. The fixed costs each year will be $9,080,000. The company has also spent $1,090,000 on research and development for the new clubs. The plant and equipment required will cost $28,560,000 and will be depreciated on a straight-line basis. The new clubs will also require an increase in net working capital of $1,280,000 that will be returned at the end of the project. The tax rate is 36 percent, and the cost of capital is 10 percent. What is the sensitivity of the NPV to each of these variables?(Do not round intermediate calculations and round your final answers to 2 decimal places, e.g., 32.16.)

NPV
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?NPV/?Q$

I have attempted to solve this question in excel (document attached) but got stuck at NVP and unsure of my work.

image text in transcribed Sales price/unit units sold New clubs 780 52,000 Expensive clubs 1,080 -9,300 Cheap clubs 420 10,800 Variable Costs New clubs Expensive clubs Cheap clubs Pro Forma Income Statement Sales VC FC Dep EBIT Taxes(36%) Net Income OCF NPV price/unit units sold -380 52,000 -680 -9,300 -220 10,800 35,052,000 (15,812,000) 9,080,000 4,080,000 28560000 6,080,000 2,188,800 36% 3,891,200 7,971,200 10% 7 40,560,000 -10,044,000 4,536,000 35,052,000 -19,760,000 6,324,000 -2,376,000 -15,812,000

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