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

The clubs will sell for $825 per set and have a variable cost of $370 per set.

The company has spent $150,000 for a marketing study that determined the

company will sell 74,000 sets per year for seven years. The marketing study

also determined that the company will lose sales of 8,900 sets per year of its

high-priced clubs. The high-priced clubs sell at $1,250 and have variable

costs of $630. The company will also increase sales of its cheap clubs by

11,000 sets per year. The cheap clubs sell for $375 and have variable costs

of $140 per set. The fixed costs each year will be $14,350,000. The

company has also spent $1,000,000 on research and development for the

new clubs. The plant and equipment required will cost $29,400,000 and will

be depreciated on a straight-line basis. The new clubs will also require an

increase in net working capital of $3,500,000 that will be returned at the

end of the project. The tax rate is 40 percent, and the cost of capital is

14 percent. Calculate the payback period, the NPV, and the IRR.