McGilla Golf is evaluating a new line of golf clubs. The clubs will sell for $$980$ per set and

have a variable cost of $$440$ per set. The company has spent $$152,500$ for a marketing

study that determined the company will sell $49,500$ 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 $$1,480$ and have variable costs of $$610.$

The company also will increase sales of its cheap clubs by $11,900$ sets. The cheap clubs

sell for $$440$ and have variable costs of $$170$ per set. The fixed costs each year will be

$$9,550,000.$ The company has also spent $$1,125,000$ on research and development for

the new clubs. The plant and equipment required will cost $$30,450,000$ 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 $$2,470,000$ that will be returned at the end

of the project. The tax rate is $25$ percent, and the cost of capital is $13$ 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$.,32\mathrm{.}16.)$