Buckingham Packaging is considering expanding its production capacity by purchasing a new machine, the XC-750. The cost of the XC-750 is $3.00 mition. Unfortunately, installing tha machine will take several months and wis partially disrupt production. The firm has fust completed a $50.000 feasibility study to analyze the decsion 10 buy the XC-750, resuling in the following estimates Marketing Once the XC-750 is operating next year, the extra capacty as expected to generate $12.0 thilion per year in additional sales, which will continue for the 10 -year ife of the machine. Opentions: The disuption cauled by the installation will decrease sales by 55 million this year (year 0). Once the machine is operating next year, the cont of goods for the products produced by the XC-750 is expected to be 70% of their sale price. The increased production wall require additional inventory on hand of $1.5 million, to be added in year 0 and depleted in year 10 Human Resources: The expansion will require additions: sales and administrative personnel at a cost of $2 milition per year Accounting. The XC-750 has a CCA rate of 35% and no salvago value is expected. The firm expects receivables from the new sales to be 12% of revenues and payabies are expected to be 10% of the cost of goods sold. Buckingharn's marginal corporate tax rate is 28%. C. If the appropriate cost of capial for the expansion is 14%, consule the NPV of the purchase (including all CCA tax shield elfocts): (rint: when calcutating the NPV. you should calculate the free cash fows excluding CCA tax shields then add the PV CCA tax shields to get the NPV.). d. While the expectid new sales will be $12.0 milion per year from the expansion, estimates range from $9,600,000 to $14,400,000. What is the NPV in the worst case? in the best case? c. If the appropriale cost of captal for the expansion is 14%, compule the NPV the purchase. The NPV is ? (Round to the nestest dollar.)