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feasibity study to analyze the decision to buy the XC - 7 5 0 , resuling in the following estimates: Marketing: Once the XC -

feasibity study to analyze the decision to buy the XC-750, resuling in the following estimates:
Marketing: Once the XC-750 is operating next year, the extra capacity is expected to generate $10.0 million per year in additional sales, which will continue for the 10-year life of the machine.
inventory on hand of $1.0 million, to be added in year 0 and depleted in year 10.
Human Resources: The expansion will require additional sales and administrative personnel at a cost of $2 million per year.
d. While the expected new sales vill be $10.0 million per year from the expansion, estimates range from $8,000,000 to $12,000,000. What is the NPV in the worst case? In the best case?
c. If the appropriate cost of capital for the expansion is 10%, compute the NPV of the purchase.
The NFV is $-68,972.(Round to the nearest dollar.)
d. While the expected new sales will be $10.0 million per year from the expansion, estimates range from $8,000,000 to $12,000,000. What is the NPV in the worst case? In the best case?
What are the worst case free cash flows?
FCF (excluding CCA tax shields) year 0 is ?.(Round to the nearest dollar.)
FCF (excluding CCA tax shields) year 1 is s .(Round to the nearest dollar.)
FCF (excluding CCA tax shields) years 2 through 8 is $ (Round to the nearest dollar.)
FCF (excluding CCA tax shields) year 10 is : .(Round to the nearest dollar.)
FCF (excluding CCA tax shields) year 11 is $.(Round to the nearest dollar.)
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