McGilla Golf is evaluating a new line of golf clubs. The clubswill sell for $1,040 per set and have a variable cost of $470 perset. The company has spent $167,500 for a marketing study thatdetermined the company will sell 52,500 sets per year for sevenyears. The marketing study also determined that the company willlose sales of 9,900 sets of its high-priced clubs. The high-pricedclubs sell at $1,540 and have variable costs of $670. The companyalso will increase sales of its cheap clubs by 12,500 sets. Thecheap clubs sell for $470 and have variable costs of $200 per set.The fixed costs each year will be $9,850,000. The company has alsospent $1,275,000 on research and development for the new clubs. Theplant and equipment required will cost $32,550,000 and will bedepreciated on a straight-line basis to a zero salvage value. Thenew clubs also will require an increase in net working capital of$2,650,000 that will be returned at the end of the project. The taxrate is 21 percent and the cost of capital is 15 percent.

  

Calculate the payback period. (Do not round intermediatecalculations and round your answer to 3 decimal places, e.g.,32.161.)

Calculate the NPV. (Do not roundintermediate calculations and round your answer to 2 decimalplaces, e.g., 32.16.)

Calculate the IRR. (Do not roundintermediate calculations and enter your answer as a percentrounded to 2 decimal places, e.g., 32.16.)