McGilla Golf has decided to sell a new line of golf clubs. Theclubs will sell for $825 per set and have a variable cost of $385per set. The company has spent $260,000 for a marketing study thatdetermined the company will sell 68,200 sets per year for sevenyears. The marketing study also determined that the company willlose sales of 12,200 sets of its high-priced clubs. The high-pricedclubs sell at $1,195 and have variable costs of $655. The companywill also increase sales of its cheap clubs by 14,200 sets. Thecheap 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 alsospent $2,100,000 on research and development for the new clubs. Theplant and equipment required will cost $38,400,000 and will bedepreciated on a straight-line basis. The new clubs will alsorequire an increase in net working capital of $2,800,000 that willbe returned at the end of the project. The tax rate is 21 percent,and the cost of capital is 9 percent. Suppose you feel that thevalues are accurate to within only ±10 percent. What are thebest-case and worst-case NPVs? (Hint: The price and variable costsfor the two existing sets of clubs are known with certainty; onlythe sales gained or lost are uncertain.)