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Bitingham Packaging is considering expanding its production capacily by purchasing a new machine, the XC-750. The cost of the XC-750 is 5273 millon. Untorturuloy, inatalling

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Bitingham Packaging is considering expanding its production capacily by purchasing a new machine, the XC-750. The cost of the XC-750 is 5273 millon. Untorturuloy, inatalling this machine will - Human Resources: The expansion will require additional sales and administrebve personnel at a cost of $1,07 miltion per year to be 11% of the cost of goods sold. Baingham's marginal corporate tax rate is 21s a. Deternine the incremental earrings from the purchase of the C750 b. Dotermine the free cash flow trom the purchase of the Xc-750 c. If the appropriate cout of capital for the expansion is 0.7%, compute the NPV of the purchase. 6. What is the break-even level of new sales from the expansion? What is the breakeven level for the cost of goods solid? a. Determine the increnental earnings from the purchase of the C750

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