McGilla Golf is evaluating a new golf club. The clubs will sell for $750 per set and...

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McGilla Golf isevaluating a new golf club. The clubs will sell for $750 per setand have a variable cost of $350 per set. The company has spent$145,000 for a marketing study that determined the company willsell 57,000 sets per year for seven years. The marketing study alsodetermined that the company will lose sales of 9,000 sets of itshigh-priced clubs. The high-priced clubs sell at $1,050 and havevariable costs of $650. The company will also increase sales of itscheap clubs by 10,500 sets. The cheap clubs sell for $390 and havevariable costs of $205 per set. The fixed costs each year will be$9,050,000. The company has also spent $1,060,000 on research anddevelopment for the new clubs. The plant and equipment requiredwill cost $28,350,000 and will be depreciated on a straight-linebasis. The new clubs will also require an increase in net workingcapital of $1,250,000 that will be returned at the end of theproject. The tax rate is 40 percent, and the cost of capital is 10percent. What is the sensitivity of the NPV to the price andquantity of the new clubs? (Do not round intermediatecalculations and round your answers to 2 decimal places, e.g.,32.16.)

NPV
  ?NPV/?P $
  ?NPV/?Q $

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McGilla Golf isevaluating a new golf club. The clubs will sell for $750 per setand have a variable cost of $350 per set. The company has spent$145,000 for a marketing study that determined the company willsell 57,000 sets per year for seven years. The marketing study alsodetermined that the company will lose sales of 9,000 sets of itshigh-priced clubs. The high-priced clubs sell at $1,050 and havevariable costs of $650. The company will also increase sales of itscheap clubs by 10,500 sets. The cheap clubs sell for $390 and havevariable costs of $205 per set. The fixed costs each year will be$9,050,000. The company has also spent $1,060,000 on research anddevelopment for the new clubs. The plant and equipment requiredwill cost $28,350,000 and will be depreciated on a straight-linebasis. The new clubs will also require an increase in net workingcapital of $1,250,000 that will be returned at the end of theproject. The tax rate is 40 percent, and the cost of capital is 10percent. What is the sensitivity of the NPV to the price andquantity of the new clubs? (Do not round intermediatecalculations and round your answers to 2 decimal places, e.g.,32.16.) NPV ?NPV/?P$ ?NPV/?Q$