McGilla Golf has decided to sell a new line of golf clubs. The clubs will sell for $895 per set and have a variable cost of $431 per set. The company has spent $200,000 for a marketing study that determined the company will sell 80,000 sets per year for seven years. The marketing study also determined that the company will lose sales of 8,600 sets per year of its high-priced clubs. The high-priced clubs sell at $1,325 and have variable costs of $645. The company will also increase sales of its cheap clubs by 10,800 sets per year. The cheap clubs sell for $340 and have variable costs of $141 per set. The fixed costs each year will be $14,350,000. The company has also spent $1,500,000 on research and development for the new clubs. The plant and equipment required will cost $43,700,000 and will be depreciated on a straight-line basis. The new clubs will also require an increase in net working capital of $3,625,000 that will be returned at the end of the project. The tax rate is 25 percent, and the cost of capital is 11 percent. Calculate the payback period, the NPV, and the IRR. Note: Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16. Enter your IRR answer as a percent. Payback period 4.00 years Net present value $ 57,093,399.93 Internal rate of return 41.58%

McGilla Golf has decided to sell a new line of golf clubs. The clubs will sell for $739 per set and have a variable cost of $369 per set. The company has spent $159,000 for a marketing study that determined the company will sell 75,900 sets per year for seven years. The marketing study also determined that the company will lose sales of 9,400 sets per year of its high-priced clubs. The high-priced clubs sell at $1,290 and have variable costs of $630. The company will also increase sales of its cheap clubs by 11,900 sets per year. The cheap clubs sell for $349 and have variable costs of $134 per set. The fixed costs each year will be $11,290,000. The company has also spent $1,090,000 on research and development for the new clubs. The plant and equipment required will cost $25,130,000 and will be depreciated on a straight-line basis. The new clubs will also require an increase in net working capital of $1,590,000 that will be returned at the end of the project. The tax rate is 35…

McGilla Golf has decided to sell a new line of golf clubs. The clubs will sell for $965 per set and have a variable cost of $487 per set. The company has spent $340,000 for a marketing study that determined the company will sell 94,000 sets per year for seven years. The marketing study also determined that the company will lose sales of 9,300 sets per year of its high-priced clubs. The high-priced clubs sell at $1,395 and have variable costs of $715. The company will also increase sales of its cheap clubs by 12,200 sets per year. The cheap clubs sell for $396 and have variable costs of $183 per set. The fixed costs each year will be $15,750,000. The company has also spent $2,900,000 on research and development for the new clubs. The plant and equipment required will cost $59,100,000 and will be depreciated on a straight-line basis. The new clubs will also require an increase in net working capital of $4,325,000 that will be returned at the end of the project. The tax rate is 24…

Nikul

McGilla Golf has decided to sell a new line of golf clubs. The clubs will sell for $840 per set and have a variable cost of $400 per set. The company has spent $290,000 for a marketing study that determined the company will sell 69,100 sets per year for seven years. The marketing study also determined that the company will lose sales of 12,800 sets of its high-priced clubs. The high-priced clubs sell at $1,210 and have variable costs of $670. The company will also increase sales of its cheap clubs by 14,800 sets. The cheap clubs sell for $430 and have variable costs of $220 per set. The fixed costs each year will be $10,500,000. The company has also spent $2,400,000 on research and development for the new clubs. The plant and equipment required will cost $38,700,000 and will be depreciated on a straight-line basis. The new clubs will also require an increase in net working capital of $3,100,000 that will be returned at the end of the project. The tax rate is 24 percent, and the cost of…

McGilla Golf has decided to sell a new line of golf clubs. The clubs will sell for $840 per set and have a variable cost of $400 per set. The company has spent $290,000 for a marketing study that determined the company will sell 69,100 sets per year for seven years. The marketing study also determined that the company will lose sales of 12,800 sets of its high-priced clubs. The high-priced clubs sell at $1,210 and have variable costs of $670. The company will also increase sales of its cheap clubs by 14,800 sets. The cheap clubs sell for $430 and have variable costs of $220 per set. The fixed costs each year will be $10,500,000. The company has also spent $2,400,000 on research and development for the new clubs. The plant and equipment required will cost $38,700,000 and will be depreciated on a straight-line basis. The new clubs will also require an increase in net working capital of $3,100,000 that will be returned at the end of the project. The tax rate is 24 percent, and the cost of…

Baghiben

McGilla Golf has decided to sell a new line of golf clubs. The clubs will sell for $710 per set and have a variable cost of $310 per set. The company has spent $141,000 for a marketing study that determined the company will sell 53,000 sets per year for seven years. The marketing study also determined that the company will lose sales of 8,600 sets of its high-priced clubs. The high-priced clubs sell at $1,010 and have variable costs of $610. The company will also increase sales of its cheap clubs by 10,100 sets. The cheap clubs sell for $350 and have variable costs of $185 per set. The fixed costs each year will be $9,010,000. The company has also spent $1,020,000 on research and development for the new clubs. The plant and equipment required will cost $28,070,000 and will be depreciated on a straight-line basis. The new clubs will also require an increase in net working capital of $1,210,000 that will be returned at the end of the project. The tax rate is 22 percent, and the cost of…

McGilla Golf has decided to sell a new line of golf clubs. The clubs will sell for $775 per set and have a variable cost of $335 per set. The company has spent $160,000 for a marketing study that determined the company will sell 61,000 sets per year for seven years. The marketing study also determined that the company will lose sales of 10,200 sets of its high-priced clubs. The high-priced clubs sell at $1,145 and have variable costs of $605. The company will also increase sales of its cheap clubs by 12,200 sets. The cheap clubs sell for $365 and have variable costs of $155 per set. The fixed costs each year will be $9,850,000. The company has also spent $1,100,000 on research and development for the new clubs. The plant and equipment required will cost $37,400,000 and will be depreciated on a straight-line basis. The new clubs will also require an increase in net working capital of $1,800,000 that will be returned at the end of the project. The tax rate is 21 percent, and the cost of…

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…