McGilla Golf has decided to sell a new line of golf clubs. Theclubs will sell for $865 per set and have a variable cost of $425per set. The company has spent $340,000 for a marketing study thatdetermined the company will sell 70,600 sets per year for sevenyears. The marketing study also determined that the company willlose sales of 13,800 sets of its high-priced clubs. The high-pricedclubs sell at $1,235 and have variable costs of $695. The companywill also increase sales of its cheap clubs by 15,800 sets. Thecheap clubs sell for $455 and have variable costs of $245 per set.The fixed costs each year will be $10,750,000. The company has alsospent $2,900,000 on research and development for the new clubs. Theplant and equipment required will cost $39,200,000 and will bedepreciated on a straight-line basis. The new clubs will alsorequire an increase in net working capital of $3,600,000 that willbe returned at the end of the project. The tax rate is 24 percent,and the cost of capital is 12 percent. Suppose you feel that thevalues are accurate to within only ±10 percent.

What are the best-case and worst-case NPVs? (Hint: The price andvariable costs for the two existing sets of clubs are known withcertainty; only the sales gained or lost are uncertain.) (Anegative answer should be indicated by a minus sign. Do not roundintermediate calculations and round your answers to 2 decimalplaces, e.g., 32.16.)