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completed a $50,000 feasibility study to analyze the decision to buy the XC-750, resulting in the following estimates: require increased inventory on hand of $1.01

image text in transcribed completed a $50,000 feasibility study to analyze the decision to buy the XC-750, resulting in the following estimates: require increased inventory on hand of $1.01 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 $2.01 million per year. 30%. a. Determine the incremental earnings from the purchase of the XC-750. b. Determine the free cash flow from the purchase of the XC-750. c. If the appropriate cost of capital for the expansion is 10.4%, compute the NPV of the purchase. e. What is the break-even level of new sales from the expansion? What is the breakeven level for the cost of goods sold? additional sales (above the $10.10 million expected for the XC750 ) per year in those years would justify purchasing the larger machine

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