Problem: McGill Golf has decided to vend new line of golf clubs. The clubs will sell for $750 per set and have variable cost of $360 per set. The company has spent $150,000 for marketing study that determined the company will sell 72,000 sets per year for 7 years. The marketing study as well determined that the company will lose sales of 8500 sets per year of its high priced clubs. The high priced sell at $1,100 and have variable costs of $540. The company will also raise stakes of its cheap clubs by 11,000 sets per year. The cheap clubs sell for $360 and have variable cost of $125 per set. The fixed costs each and every year will be $13,900.00. The company has also spent $1,000,000 on research and development for new clubs. The plant and equipment required will cost $28,700,000 and will be depreciated on straight-line value basis. The new clubs will also require a raise in net working capital of $2,100,000 that will be returned at the end of project. The tax rate is 40 percent and cost of capital is 14 percent. Compute the payback period and NPV.