McGilla Golf has decided to sell a new line of golf clubs. The company would like to know the sensitivity of NPV to changes in the price of the new clubs and the quantity of new clubs sold. The clubs will sell for $820 per set and have a variable cost of $380 per set. The company has spent $250,000 for a marketing study that determined the company will sell 67,900 sets per year for seven years. The marketing study also determined that the company will lose sales of 12,000 sets of its high-priced clubs. The high-priced clubs sell at $1,190 and have variable costs of $650. The company will also increase sales of its cheap clubs by 14,000 sets. The cheap clubs sell for $410 and have variable costs of $200 per set. The fixed costs each year will be $10,300,000. The company has also spent $2,000,000 on research and development for the new clubs. The plant and equipment required will cost $38,300,000 and will be depreciated on a straight-line basis. The new clubs will also require an increase in net working capital of $2,700,000 that will be returned at the end of the project. The tax rate is 25 percent, and the cost of capital is 13 percent. What is the sensitivity of the NPV to each of these variables? (Do not round intermediate calculations and round your answers to 2 decimal places, e.... 32.16.) ANPVIAP ANPVIAQ Sloan Transmissions, Inc., has the following estimates for its new gear assembly project: price = $1,800 per unit: variable costs = $360 per unit; fixed costs = $1.5 million: quantity 82,000 units. Suppose the company believes all of its estimates are accurate only to within +20 percent. What values should the company use for the four variables given here when it performs its best-case scenario analysis? What about the worst-case scenario? Units Sales Unit Price Unit Variable cost Fixed Costs Scenario Base Best Worst