Problem $11-20$ Project Analysis $[$LO$1,2]$

McGilla Golf has decided to sell a new line of golf clubs. The clubs will sell for $$825$ per set and have a variable cost of $$385$ per set. The company has spent $$260,000$ for a marketing study that determined the company will sell $68,200$ sets per year for seven years. The marketing study also determined that the company will lose sales of $12,200$ sets of its high$-$priced clubs. The high$-$priced clubs sell at $$1,195$ and have variable costs of $$655.$ The company will also increase sales of its cheap clubs by $14,200$ sets. The cheap clubs sell for $$415$ and have variable costs of $$205$ per set. The fixed costs each year will be $$10,350,000.$ The company has also spent $$2,100,000$ on research and development for the new clubs. The plant and equipment required will cost $$38,400,000$ and will be depreciated on a straight$-$line basis. The new clubs will also require an increase in net working capital of $$2,800,000$ that will be returned at the end of the project. The tax rate is $21$ percent, and the cost of capital is $9$ 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$.,32\mathrm{.}16.)$

$\backslash$table$[[$a$.$ Payback period,$0\mathrm{.}868,$years,$],[$b$.$ NPV$,$$$,85,896,590\mathrm{.}46,],[$c$.$ IRR,,$24\mathrm{.}46,\%$