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

$$860$ per set and have a variable cost of $$420$ per set. The company has

spent $$330,000$ for a marketing study that determined the company will sell

$70,300$ sets per year for seven years. The marketing study also determined

that the company will lose sales of $13,600$ sets of its high$-$priced clubs. The

high$-$priced clubs sell at $$1,230$ and have variable costs of $$690.$ The company

will also increase sales of its cheap clubs by $15,600$ sets. The cheap clubs sell

for $$450$ and have variable costs of $$240$ per set. The fixed costs each year

will be $$10,700,000.$ The company has also spent $$2,800,000$ on research and

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

$$39,100,000$ 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 $23$ percent, and the cost of

capital is $11$ percent.

Suppose you feel that the values are accurate to within only $+-10$ percent. What

are the best$-$case and worst$-$case NPVs$?($Hint: The price and variable costs for

the two existing sets of clubs are known with certainty; only the sales gained

or lost are uncertain.$)($A negative answer should be indicated by a minus

sign. Do not round intermediate calculations and round your answers to $2$

decimal places, e$.$g$.,32\mathrm{.}16.)$

Answer is complete but not