McGilla Golf is evaluating a new line of golf clubs. The clubswill sell for $910 per set and have a variable cost of $405 perset. The company has spent $135,000 for a marketing study thatdetermined the company will sell 46,000 sets per year for sevenyears. The marketing study also determined that the company willlose sales of 8,600 sets of its high-priced clubs. The high-pricedclubs sell at $1,410 and have variable costs of $540. The companyalso will increase sales of its cheap clubs by 11,200 sets. Thecheap clubs sell for $405 and have variable costs of $135 per set.The fixed costs each year will be $9,200,000. The company has alsospent $950,000 on research and development for the new clubs. Theplant and equipment required will cost $28,000,000 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$2,260,000 that will be returned at the end of the project. The taxrate is 23 percent and the cost of capital is 14 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 round intermediatecalculations and round your answer to 2 decimal places, e.g.,32.16.)

Calculate the IRR. (Do not round intermediatecalculations and enter your answer as a percent rounded to 2decimal places, e.g., 32.16.)