production. The firm has just completed a $50,000 feasibility study 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 $12.0 million per year in additional sales, which will continue for the 10 -year life of the machine. The increased production will require additional inventory on hand of $1.5 million, to be added in year 0 and depleted in year 10 . Human Resources: The expansion will require additional sales and administrative personnel at a cost of $2 million per year. corporate tax rate is 28%. CCA tax shields to get the NPV.) d. While the expected new sales will be $12.0 million per year from the expansion, estimates range from $9,600,000 to $14,400,000. What is the NPV in the worst case? In the best case? c. If the appropriate cost of capital for the expansion is 14%, compute the NPV of the purchase. The NPV is $. (Round to the nearest dollar.) What are the worst case free cash flows? FCF (excluding CCA tax shields) year 0 is $ __. (Round to the nearest dollar.) FCF (excluding CCA tax shields) year 1 is $_. (Round to the nearest dollar.) FCF (excluding CCA tax shields) years 2 through 9 is ! . (Round to the nearest dollar.) FCF (excluding CCA tax shields) year 10 is $ _. (Round to the nearest dollar.) FCF (excluding CCA tax shields) year 11 is $. (Round to the nearest dollar.) The worst case NPV is $ (Round to the nearest dollar.) What are the best case free cash flows? FCF (excluding CCA tax shields) year 0 is $ (Round to the nearest dollar.) FCF (excluding CCA tax shields) year 1 is $ _. (Round to the nearest dollar.) FCF (excluding CCA tax shields) years 2 through 9 is $. (Round to the nearest dollar.) FCF (excluding CCA tax shields) year 10 is $ _. (Round to the nearest dollar.) FCF (excluding CCA tax shields) year 11 is $. (Round to the nearest dollar.) The best case NPV is $. (Round to the nearest dollar.)