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months and will partially disrupt production. The firm has just completed a $ 4 9 , 0 0 0 feasibility study to analyze the decision

months and will partially disrupt production. The firm has just completed a $49,000 feasibility study to analyze the decision to buy the xC-750, resulting in the following estimates $1.08 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 $1.95 million per year marginal corporate tax rate is 15%.
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 97%, compute the NPV of the purchase.
a. Determine the incremental earnings from the purchase of the XC-750.
Calculate the incremental earnings from the purchase of the xC-750 below. (Round to the nearest dollar.)
Incremental Earnings
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