Please complete parts D,E, and F

Billingham Packaging is considering expanding its production capacity by purchasing a new machine, the XC-750. The cost of the XC-750 is $2.66 million. Unfortunately installing this machine will take several months and will partially disrupt production. The firm has just completed a $49,000 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 $10.00 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 Billingham's existing products, the cost of goods for the products produced by the XC-750 is expected to PUR 3000 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 0 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. Billingham's 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 FIN 3403 cost of capital for the expansion is 0.1%, compute the NPV of the purchase he app d. While the expected new sales will be S10.00 million per year from the expansion, estimates range from $7.90 million to S12.10 million. What is the NPV in the worst case In the best case e? What is the break-even level of new sales from the expansion? What is the breakeven level for the cost of goods sold? a. Determine the incremental earnings from the purchase of the XC-750 Calculate the incremental earnings from the purchase of the XC-750 below (with vs. without XC? 750): (Round to the nearest dollar)