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please please help me out with these part a-f. seriously would help me out so much. i sent what each part a-f would look like
please please help me out with these part a-f. seriously would help me out so much. i sent what each part a-f would look like from the trial question which have different numbers but the correct numbers to plug in are on the first two pictures. please please help me!!
Elilingham Padaging is considering oxpanding its production capacity by purchasing a new machine, the XC-750. The cost of the XC-750 in $2.83 miltion. Unfortunately, installing this machine Will * Marketing Once the XC-750 is operabonal next year, the extra capacity is expected to generate $10.05 mallon por yoar in additional sales, which will continue for the 10 -yoar life of the machine. is expected to be 70 s a treir sale proce. The horeased production will also require increased inventory on fund of $1.16 milion duning the lfe of the project, including year 0. - Humen Resourses: The exparsion wall require additional sales and administrative personinel at a cost ef $2.03 million per year: to be 11% of the coat of goods sold. Bainghumb magrinal corporate tax rate is 21% 2. Determine the incremental earnings from the purchase of the XC.750. b. Determine the free cash tow frotn the purchase of the Xc-750. e. if the apceopriate cost of capital for the expansion is 10.5%, comoute the NPV of the purchase. d. While the expected new sales will be $10.05 million per year from the expansion, entimates range from $8.00 million to $12.10 million. What is Ele NPV in the wont case? in the best case? s. What is the break-evnn level of renw sales from the exnankinn? What is the breskeven level for the cost of ooods sold? is expected to be 70% of their sale price. The hareased production wil also require increased inventory on hand of $1.16 miltion suring the ile of the project, induding year 0. - Human Resources: The exparsion witl require additional sales and administrative personnel at a cost of $2.03 million per year. - Accounting The XC-750 wil be depreciated via the straightiline method over the 10 -year He of the machine. The firm expects receivabiles from the new sales io be 16% of revenives and payables. to be 11 s of the cost of goods sold. Alinghams marginal corporate tax rate is 21%. a. Detertine the incremental earrings from the purchase of the XC-750. b. Determine the free cass fow from the purchase of the XC - 750 . c. If the appropriate cost of capital for the expansion is 10.5%, compute the NPV of the purchase. d. While the expected new sales wa be $10.05 mition per year from the expansion, estimates range from $8.00 milion to $12.10 milion. What is the NPV in the worst case? in the best case? e. What is the bresk-even level of new soles from the expansion? What is the breakoven level for the cost of goods sold? but would allow for additional tales in years 3 through 10 . What level of additional tales (above the $10.05 millon expected for the C - 750 ) per year in these years would justify purchasing the larger machine? a. Determine the incremental eamings from the purchase of the XC-750. Calculate the incremental eamings from the purchase of the XC750 below (with vs. without XC7750) : (Round to the nearest dollar.) Incremental Effects (with vs. without XC-750) b. Determine the free cash flow from the purchase of the XC-750, Calculate the free cash flow from the purchase of the XC-750 below (with vs. without XC?750): (Note: the change in net working capital for year 0 is equal to the sum of the change in accounts recelvable due to the decrease in sales, the change in invontory due to the increase in inventory starting in year 0 , and the change in accounts payable dian to the decrease in cost of goods sold: (Round to the nearest dolar) c. If the appropriate cost of capital for the expansion is 9.8%, compute the NPV of the purchase. The NPV of the purchase is $ (Round to the nearest dollar.) d. Whie the expected new sales will bo $10.20 milion per year from the expansion, estimates tange from $8.15malian to $12.25milion. What is the NpV in the wornt case? in the best case? The NPV of the purchase for sates or $8.15mili ion is : (Round to the nearest dollac) The NPV of the purchase for sales of $12.25 million is ? (Round to the nearest dollar.) e. What is the break-even level of new sales from the expansion? The break-even level of new sales from the expansion is $ (Round to the nearest dollar.) What is the breakeven level for the cost of goods sold? The breakeven level for the cost of goods sold is % of sales. (Round to two decimal places.) 1. Billingham could instead purchase the XC-900, which offers evon greater capacily. The cost of the XC-900 it $4.09 million. The extra capacty would not be useful in the first two years of operaticn, but would allow for addifional sales in years 3 through 10 . What level of additional sales (above the $10.20 million expected for the XC-750) per year in those years would fustity purchasing the larger machine? The additional sales would nend to be s (Round to the nearest dellar.) Step by Step Solution
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