McGilla Golf is evaluating a new line of golf clubs. The clubs will sell for $$990$ per set and

have a variable cost of $$445$ per set. The company has spent $$155,000$ for a marketing

study that determined the company will sell $50,000$ sets per year for seven years. The

marketing study also determined that the company will lose sales of $9,400$ sets of its

high$-$priced clubs. The high$-$priced clubs sell at $$1,490$ and have variable costs of $$620.$

The company also will increase sales of its cheap clubs by $12,000$ sets. The cheap clubs

sell for $$445$ and have variable costs of $$175$ per set. The fixed costs each year will be

$$9,600,000.$ The company has also spent $$1,150,000$ on research and development for

the new clubs. The plant and equipment required will cost $$30,800,000$ and will be

depreciated on a straight$-$line basis to a zero salvage value. The new clubs will also

require an increase in net working capital of $$2,500,000$ that will be returned at the end

of the project. The tax rate is $21$ percent, and the cost of capital is $14$ 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$.,32\mathrm{.}16.)$