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please show formulas Billingham Packaging is considering expanding its production capacity by purchasing a new machine, the XC-750. The cost of the XC-750 is $2.75

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Billingham Packaging is considering expanding its production capacity by purchasing a new machine, the XC-750. The cost of the XC-750 is $2.75 million. Unfortunately, installing this machine will take several months and will partially disnupt production. The firm has just completed a $50,000 feasibility stady 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 $11 million per year in additional sales, which will continue for the ten-year life of the machine. - Operations: The distuption caused by the installation will decrease sales by 55 million this year. As with Billinghiam's 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 require additional inventory of $1 million, to be added in year 0 and depleted in year 10 . - Himan Resolecees: The expansion will require additional sales and administrative personnel at a cost of $2 million per year. - Accolinting: The XC-750 will be deprecinted via the straight-line method in years 1-10. Receivables are expected to be 15\% of revenues and payables to be 10% of the cost of goods sold. Billingliam's marginal corporate tax rate is 35%. - Cost of Capufal: Billingham Packaging believes that the new project has the same cost of capital as its current assets. Currently, Billingham Packaging is all-equity financed. Its equity beta is 1.4. The risk-free rate is 3%, and the market risk premium is 5%. Nate: Knen all numbers in WDOs

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