. MGM Co has decided to sell a new line of golf clubs. The clubs will sell for $850 per set and have a variable cost of $400 per set. The company has spent $300,000 for a marketing study that determined the company will sell 68500 per year for seven years. The marketing study also determined that the company will lose sales of 12,400 sets of its high-priced clubs. The high-priced clubs will sell at $1200 and a variable cost of $660. The company will also increase sales of its cheap clubs by 14,400 sets. The cheap clubs sell for $420 and have a variable cost of $210 per set. The fixed cost each year will be $10400,000. The company has also spent $2,500,000 on research and development for the new clubs. The plant and equipment required will cost $38,500,000 and it will be depreciated on a straight-line basis. The new clubs will also require an increase in net working capital of $2900,000 that it will be returned at the end of the project. The tax rate is 21 percent and the cost of capital is 12 percent.

Suppose that 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 cost for the two existing set of clubs are known with certainty; only the sales gained or lost are uncertain)