Buckingham Packaging is considering expanding its production capacity by purchasing a new$$ machine, the$$ XC$-750.$ The cost of the$$ XC$-750$ is $$2\mathrm{.}67$ million.$$ Unfortunately, installing this machine will take several months and will partially disrupt production. The firm has just completed a $$45,000$ feasibility study to analyze the decision to buy the$$ XC$-750,$ resulting in the following$$ estimates:

$$Marketing: Once the$$ XC$-750$ is operational next$$ year, the extra capacity is expected to generate $$10\mathrm{.}20$ million per year in additional$$ sales, which will continue for the$10-$year life of the machine.

$$Operations: The disruption caused by the installation will decrease sales by $$5\mathrm{.}03$ million this year. As with$$ Buckingham's existing$$ products, the cost of goods for the products produced by the$$ XC$-750$ is expected to be $75\%$ of their sale price. The increased production will also require increased inventory on hand of $$1\mathrm{.}18$ million during the life of the$$ project, including year $0.$

$$ Human$$ Resources: The expansion will require additional sales and administrative personnel at a cost of $$1\mathrm{.}97$ million per year.

$$Accounting: The$$ XC$-750$ has a CCA rate of$30\%,$ and no salvage value is expected. The firm expects receivables from the new sales to be $15\%$ of revenues and payables to be $9\%$ of the cost of goods sold.$$ Buckingham's marginal corporate tax rate is $35\%.$

Buckingham could instead purchase the$$ XC$-900,$ which offers even greater capacity. The cost of the$$ XC$-900$ is $$4\mathrm{.}03$ million. The extra capacity would not be useful in the first two years of operation but would allow for additional sales in years $310.$

What kind of real option does the$$ XC$-900$ machine provide to$$ Buckingham?