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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 $ feasibility study to analyze the decision to buy the resulting in the following estimates $ million, to be added in year and depleted in year
Human Resources: The expansion will require additional sales and administrative personnel at a cost of $ million per year marginal corporate tax rate is
a Determine the incremental earnings from the purchase of the XC
b Determine the free cash flow from the purchase of the XC
c If the appropriate cost of capital for the expansion is compute the NPV of the purchase.
a Determine the incremental earnings from the purchase of the XC
Calculate the incremental earnings from the purchase of the below. Round to the nearest dollar.
Incremental Earnings
tableYearCSales Revenues,$
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