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please fill in all parts lf the excel sheet based off the provide notes Using the following assumptions, Calculate the NPV and IRR for a

please fill in all parts lf the excel sheet based off the provide notes image text in transcribed
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Using the following assumptions, Calculate the NPV and IRR for a Base Case, a Downside Case, and an Upalde Case Note that the worksheet has spacas for esch case, set up (hopefully) in print friendly format. Assumptions: Khston Packaging is considedny expanding ts capacily by purchasing a new machine, the XC450. The cost is $2.75 milion. Unfortunately, histaling tha machine wal take severai months and wal partialy disupt current production. The frm has just corppleted a $50,000 fessbility atudy to analyze the decision to buy the XC-750, resuting in the folowing estimates: Motketine: Once the XC.750 is operational next year, the extre capachy is expected to genecate $10 milion per year in addibonal sales: which wit continue for the ten-year lile of the machine. Operations Operitions: The disuption caused by the instalotion wit decrease sales by $5 miltion this year. As wath Kinston's existing products, the cost of goods for the producted produced by the XC-750 is expected to be 64% of their sale price. The increased production we also require incressed inventory on hand of $1 milion during the lile of the project, including year 0. Human Rinourees: Human Rosounees: The expansion will roquire additional sales and adminutrative personnel at a cost of $2 million per year. Acoounting: The XC-750 wil be depreclated via the stinight ine method over the ten-year He of the machine. Khaten's marginal tax rate is 27%. No salvage value is assumed for the machine. COCs instactions Whib the base case astumptions seem teasonable, she believes that actual saies could nange from $8 millon to $12 milion

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