months and will partially disrupt production. The firm has just completed a $$50,000$ feasibility study to analyze the decision to buy the $xC-750,$ resulting in the following estimates: expected to be $70\%$ of their sale price. The increased production will require additional inventory on hand of $$1\mathrm{.}2$ 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. goods sold. Buckingham's marginal corporate tax rate is $33\%.$

a$.$ Determine the incremental earnings $($using CCA $)$ from the purchase of the XC$-750.$

b$.$ Determine the free cash flow $($including all CCA tax shield effects$)$ from the purchase of the XC$-750$ for the first $10$ years. $($Hint: include the impact in year $11.)$