McGilla Golf has decided to sell a new line of golf clubs. The clubs will sell for $739 per set and have a variable cost of $369 per set. The company has spent $159,000 for a marketing study that determined the company will sell 25,900 sets per year for three years. The marketing study also determined that the company will lose sales of 9,400 sets per year of its high-priced clubs. The high-priced clubs sell at $1,290 and have variable costs of $630. The company will also increase sales of its cheap clubs by 11,900 sets per year. The cheap clubs sell for $349 and have variable costs of $134 per set. The fixed costs each year will be $1,290,000. The company has also spent $1,090,000 on research and development for the new clubs. The plant and equipment required will cost $1,130,000 and will be depreciated using the 7-yr MACRS schedule. It can be sold for 30% of the acquisition cost at the end of the project. The new clubs will also require initial net working capital of $7,590,000 and will maintain a level equal to 25% of the total sales. The tax rate is 35 percent, and the cost of capital is 12 percent. 7-year MACRS 1 14.29% 2 24.49% 3 17.49% Deliverables: 1. An analysis showing the following information: a. Depreciation table with year, MACRS %, depreciation and book value b. Income statements for each year c. Project cash flows for each year d. NPV.