P 9-36 (similar to) Bingham Packaging is considering epending its production capacity by purchasing a new machine, the XC-750. The cost of the XC-750 26 on noontling the machine word way production. The firm has just completed a $50,000 fanity study to analye the decision to buy the XC 750 ring in the following My Once the XC 750 is operational next year the entire capacity is expected to get $10.15 mil peor you in additionale which will continue to the 10 year of the machine Increased production will also require increased tory on hand of 51.05 ton during the Weat the projet, duding year Operator: The diruption comed by the retallation wil decrease ale by 4.6 milyout. As we are trade delle fra de modiced by Cipollet Human Resources: The expansion will require additional sales and administrative personal controllo per year Accounting: The XC-750 will be depreciated via the right line method over the 10yout 1e of the machine Thements receiveles from the roles to be free and parties to be at the cost of potem Dilingam could instead purchase the XC 900, which offers even greater capacity. The cost of the XC 900 5401 sition. The strongey would not be in a fra two years of wory 2. What kind of real oplion does the XC-900 machine provide to Bingham b. Billingham knows that it cool the XC-750 to another firm for $200 million in two years, what kind of real option would that provide What kind of real option does the XC- machine provide to Blingham? (Select all the choices that oply) DA The expansion will require additional sales and administrative personnel BB. The XC-900 allows Blingham The opon to expand production arting in your Dc, it would be better production mains the same, Binghams under to obligion to all of the XC90 production capul D. I would be beneficial to expand production lingham will increase production with the XC-900 Billingham Packaging is considering expanding its production capacity by purchasing a new machine, the XC-750. The cost of the XC-750 is $2.68 million. Unfortunately, installing this machine will take several 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: Marketing: Once the XC-750 is operational next year, the extra capacity is expected to generate $10.15 million per year in additional sales, which will continue for the 10-year life of the machine. Operations: The disruption caused by the installation will decrease sales by $4.96 million this year. As with Billingham's existing products, the cost of goods for the products produced by the XC-750 is expected to be 71% of their sale price. The increased production will also require increased inventory on hand of $1.05 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 $1.98 million per year. Accounting: The XC-750 will be depreciated via the straight-line method over the 10-year life of the a. What kind of real option does the XC-900 machine provide to Billingham? (Select all the choices that apply.) . A. The expansion will require additional sales and administrative personnel B. The XC-900 allows Billingham the option to expand production starting in year 3. c. If it would be better if production remains the same, Billingham is under no obligation to utilize all of the XC-900 production capacity D. If it would be beneficial to expand production, Billingham will increase production with the XC-900. P 9-36 (similar to) Bingham Packaging is considering epending its production capacity by purchasing a new machine, the XC-750. The cost of the XC-750 26 on noontling the machine word way production. The firm has just completed a $50,000 fanity study to analye the decision to buy the XC 750 ring in the following My Once the XC 750 is operational next year the entire capacity is expected to get $10.15 mil peor you in additionale which will continue to the 10 year of the machine Increased production will also require increased tory on hand of 51.05 ton during the Weat the projet, duding year Operator: The diruption comed by the retallation wil decrease ale by 4.6 milyout. As we are trade delle fra de modiced by Cipollet Human Resources: The expansion will require additional sales and administrative personal controllo per year Accounting: The XC-750 will be depreciated via the right line method over the 10yout 1e of the machine Thements receiveles from the roles to be free and parties to be at the cost of potem Dilingam could instead purchase the XC 900, which offers even greater capacity. The cost of the XC 900 5401 sition. The strongey would not be in a fra two years of wory 2. What kind of real oplion does the XC-900 machine provide to Bingham b. Billingham knows that it cool the XC-750 to another firm for $200 million in two years, what kind of real option would that provide What kind of real option does the XC- machine provide to Blingham? (Select all the choices that oply) DA The expansion will require additional sales and administrative personnel BB. The XC-900 allows Blingham The opon to expand production arting in your Dc, it would be better production mains the same, Binghams under to obligion to all of the XC90 production capul D. I would be beneficial to expand production lingham will increase production with the XC-900 Billingham Packaging is considering expanding its production capacity by purchasing a new machine, the XC-750. The cost of the XC-750 is $2.68 million. Unfortunately, installing this machine will take several 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: Marketing: Once the XC-750 is operational next year, the extra capacity is expected to generate $10.15 million per year in additional sales, which will continue for the 10-year life of the machine. Operations: The disruption caused by the installation will decrease sales by $4.96 million this year. As with Billingham's existing products, the cost of goods for the products produced by the XC-750 is expected to be 71% of their sale price. The increased production will also require increased inventory on hand of $1.05 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 $1.98 million per year. Accounting: The XC-750 will be depreciated via the straight-line method over the 10-year life of the a. What kind of real option does the XC-900 machine provide to Billingham? (Select all the choices that apply.) . A. The expansion will require additional sales and administrative personnel B. The XC-900 allows Billingham the option to expand production starting in year 3. c. If it would be better if production remains the same, Billingham is under no obligation to utilize all of the XC-900 production capacity D. If it would be beneficial to expand production, Billingham will increase production with the XC-900