Being Packaging is considering expanding its production capacity by purchasing a new machine, the XC-750. The cost of the XC-750 12.83 million. Unfortunately, installing machine will take over and will partially production. The firm has just completed a $45,000 feasibility study to analyze the decision to buy the XC-750, resulting in the following Marketing. Once the XC-750 is operating next year, the capacity is expected to generate 510.2 milion per year in addition, which will continue for the year of the machine + Operation. The daruption caused by the installation wil decrease sales by $5 million this year. As with Bingham's exsting products, the cost of goods for the products produced by the XC-700 spected to be 5% of the sale price. The Increased production will also require increased inventory on hand of $10 milion during the ite of the project. The increased production will require additional entory of 101 milion to be added in year and deleted in year to Human Resources. The expertion will required to sales and administrative personnel at a cost of $1.9 milion per year Accounting The XC-780 will be depreciated via the rootine method years 1-10. Recebare anpected to be 10% of revenue and payable to be 11 of the cost of goose oldtinghan's marginal corporate tax cute's 19% Determine encremental coming from purchase of the XC-750 Determine the free cash flow from the purchase of the XC-750 c. If the propriate cost of capital for the expansion is 9.5%, compute the NPV of the purchase d. While the expected newales will be 5102 million per year from the expansion, imates range from $8.15 min to $12.25 milion What is the NPV in the worst case in the best che? What is the break even level of wales from the expansion? What is the break-even level for the cost of goods sold as a percentage of sai? Ingham could instead purchase the XC-900, which offers even greater capacity. The cost of the XC-900 53.9 milion The capably would not be used in the tree years of operation. It would allow for additional sales in years 3:10. Whatevel of additional sales (above the $10.2 million expected for the XC-750) per year in the years would justly purchasing the larger machine Being Packaging is considering expanding its production capacity by purchasing a new machine, the XC-750. The cost of the XC-750 12.83 million. Unfortunately, installing machine will take over and will partially production. The firm has just completed a $45,000 feasibility study to analyze the decision to buy the XC-750, resulting in the following Marketing. Once the XC-750 is operating next year, the capacity is expected to generate 510.2 milion per year in addition, which will continue for the year of the machine + Operation. The daruption caused by the installation wil decrease sales by $5 million this year. As with Bingham's exsting products, the cost of goods for the products produced by the XC-700 spected to be 5% of the sale price. The Increased production will also require increased inventory on hand of $10 milion during the ite of the project. The increased production will require additional entory of 101 milion to be added in year and deleted in year to Human Resources. The expertion will required to sales and administrative personnel at a cost of $1.9 milion per year Accounting The XC-780 will be depreciated via the rootine method years 1-10. Recebare anpected to be 10% of revenue and payable to be 11 of the cost of goose oldtinghan's marginal corporate tax cute's 19% Determine encremental coming from purchase of the XC-750 Determine the free cash flow from the purchase of the XC-750 c. If the propriate cost of capital for the expansion is 9.5%, compute the NPV of the purchase d. While the expected newales will be 5102 million per year from the expansion, imates range from $8.15 min to $12.25 milion What is the NPV in the worst case in the best che? What is the break even level of wales from the expansion? What is the break-even level for the cost of goods sold as a percentage of sai? Ingham could instead purchase the XC-900, which offers even greater capacity. The cost of the XC-900 53.9 milion The capably would not be used in the tree years of operation. It would allow for additional sales in years 3:10. Whatevel of additional sales (above the $10.2 million expected for the XC-750) per year in the years would justly purchasing the larger machine