Please complete parts C through F

Marketing: Once the XC-750 is operational next year, the extra capacity is expected to generate $10.00 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 $5.05 million this year. As with Existing products, the cost of goods for the products produced by the XC-750 is expected to be 70% of their sale price. The increased production will also require increased inventory on hand of $1.15 million during the life of the project, including year Human Resources: The expansion will require additional sales and administrative personnel at a cost of $1.94 million per year. Accounting: The XC-750 will be depreciated via the straight-line method over the 10-year life of the machine. The firm expects receivables from the new sales to be 14% of revenues and payables to be 10% of the cost of goods sold. Marginal corporate tax rate is 35%. 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. the appropriate cost of capital for the expansion is 0.1%, compute the NPW of the purchase d. While the expected new sales will be $10.00 million per year from the expansion, estimates range from $7.90 mi on to $12.10 million. What is the NPV in the worst case? In the best case? e. What is the breakeven level of new sales from the expansion? What s the breakeven level for the cost of goods sold? f. Could instead purchase the XC-900, which offers even greater capacity. The cost of the XC-900 is $3.95 million, The extra capacity would not be useful in the first two years of operation, but would allow for additional sales in years 3 through 10. What level of additional sales (above the $10.00 million expected for the XC-750) per year in those years would justify purchasing the larger machine