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McGilla Golf has decided to sell a new line of golf clubs. The clubs will sell for $935 per set and have a variable cost

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McGilla Golf has decided to sell a new line of golf clubs. The clubs will sell for $935 per set and have a variable cost of $463 per set. The company has spent $280,000 for a marketing study that determined the company will sell 88,000 sets per year for seven years. The marketing study also determined that the company will lose sales of 9,000 sets per year of its high-priced clubs. The high-priced clubs sell at $1,365 and have variable costs of $685. The company will also increase sales of its cheap clubs by 11,600 sets per year. The cheap clubs sell for $372 and have variable costs of $165 per set. The fixed costs each year will be $15,150,000. The company has also spent $2,300,000 on research and development for the new clubs. The plant and equipment required will cost $52,500,000 and will be depreciated on a straight-line basis. The new clubs will also require an increase in net working capital of $4,025,000 that will be returned at the end of the project. The tax rate is 23 percent, and the cost of capital is 11 percent. Calculate the Time O cash flow. (Enter your answer as a positive value. Do not round Intermediate calculations and round your answer to the nearest whole number, e... 32.) Time 0 cash flow Construct the pro forma income statement. (Do not round intermediate calculations and round your answers to the nearest whole number, e.g., 32.) Sales Variable costs Fixed costs Depreciation EBIT Taxes Net income and round your answer to Calculate the OCF. (Do not round intermediate the nearest whole number, e.g., 32.) OCE Calculate the payback period, the NPV, and the IRR. (Enter your IRR as a percent. Do not round intermediate calculations and round your answers to 2 decimal places, e.g. 32.16.) years Payback period Net present value Internal rate of return

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