McGilla Golf has decided to sell a new line of golf clubs. Theclubs will sell for $805 per set and have a variable cost of $365per set. The company has spent $220,000 for a marketing study thatdetermined the company will sell 67,000 sets per year for sevenyears. The marketing study also determined that the company willlose sales of 11,400 sets of its high-priced clubs. The high-pricedclubs sell at $1,175 and have variable costs of $635. The companywill also increase sales of its cheap clubs by 13,400 sets. Thecheap clubs sell for $395 and have variable costs of $185 per set.The fixed costs each year will be $10,150,000. The company has alsospent $1,700,000 on research and development for the new clubs. Theplant and equipment required will cost $38,000,000 and will bedepreciated on a straight-line basis. The new clubs will alsorequire an increase in net working capital of $2,400,000 that willbe returned at the end of the project. The tax rate is 22 percent,and the cost of capital is 10 percent.

  

a.	Calculate the payback period. (Do not round intermediatecalculations and round your answer to 3 decimal places, e.g.,32.161.)
b.	Calculate the NPV. (Do not round intermediatecalculations and round your answer to 2 decimal places, e.g.,32.16.)
c.	Calculate the IRR. (Do not round intermediatecalculations and enter your answer as a percent rounded to 2decimal places, e.g., 32.16.)