Part 1 of 13 Points: 0.49 of 1 Save Help Billingham Packaging is considering expanding its production capacity by purchasing a new machine, the XC-750. The cost of the XC-750 is $2.74 milion Unfortunately, installing this machine will take several months and will partially disrupt production. The firm has just completed a $47.000 feasibility study to analyze the decision to buy the XC-750, resulting in the following estimates: Marketing Once the XC-750 is operating next year, the extra capacity is expected to generate $10 milion per year in additional sales which will continue for the ton-year life of the machine Operations. The disruption caused by the installation will decrease sales by $4.99 million this year. As with Bilingham'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 and of $1.18 million during the life of the project. The increased production will require additional inventory of $1.18 milion, to be added in year and depleted in your to Human Resources: The expansion will require additional sales and administrative personnel at a cost of $2.05 million per year. Accounting: The XC-750 will be depreciated via the straight-line method in years 1-10. Receivables are expected to be 14% of revenues and payable to be 9% of the cost of goods sold. Billingham's 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 the Art of ranital for the mansion is 95% mintha NPV of the a. Determine the incremental earnings from the purchase of the XC-750 Calculate the incremental canings from the purchase of the XC-750 below. (Round to the nearest dollar) Incremental Earnings Clear all Check answer Get more help View an example Help me solve this s Resume SS Part 1 of 13 Points: 0.49 of 1 Save Help Billingham Packaging is considering expanding its production capacity by purchasing a new machine, the XC-750. The cost of the XC-750 is $2.74 milion Unfortunately, installing this machine will take several months and will partially disrupt production. The firm has just completed a $47.000 feasibility study to analyze the decision to buy the XC-750, resulting in the following estimates: Marketing Once the XC-750 is operating next year, the extra capacity is expected to generate $10 milion per year in additional sales which will continue for the ton-year life of the machine Operations. The disruption caused by the installation will decrease sales by $4.99 million this year. As with Bilingham'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 and of $1.18 million during the life of the project. The increased production will require additional inventory of $1.18 milion, to be added in year and depleted in your to Human Resources: The expansion will require additional sales and administrative personnel at a cost of $2.05 million per year. Accounting: The XC-750 will be depreciated via the straight-line method in years 1-10. Receivables are expected to be 14% of revenues and payable to be 9% of the cost of goods sold. Billingham's 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 the Art of ranital for the mansion is 95% mintha NPV of the a. Determine the incremental earnings from the purchase of the XC-750 Calculate the incremental canings from the purchase of the XC-750 below. (Round to the nearest dollar) Incremental Earnings Clear all Check answer Get more help View an example Help me solve this s Resume SS
