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the following estimates: Marketing: Once the XC-750 is operating next year, the extra capacity is expected to generate $10.0 million per year in additional sales,

image text in transcribed the following estimates: Marketing: Once the XC-750 is operating next year, the extra capacity is expected to generate $10.0 million per year in additional sales, which will continue for the 10 -year life of the machine. in year 10 . Human Resources: The expansion will require additional sales and administrative personnel at a cost of $2 million per year. a. Determine the incremental earnings (using CCA ) from the purchase of the XC750. b. Determine the free cash flow (inc/uding all CCA tax shield effects) from the purchase of the XC-750 for the first 10 years. (Hint. include the impact in year 11.) a. Determine the incremental earnings (using CCA ) from the purchase of the XC750 for years 0 to 5 : The incremental earnings (including CCA ) for year 0 is $ The incremental earnings (including CCA ) for year 1 is $ The incremental earnings (including CCA ) for year 2 is $ The incremental earnings (including CCA ) for year 3 is $ The incremental earnings (including CCA ) for year 4 is $ The incremental earnings (including CCA) for year 5 is $ | Determine the incremental earnings (using CCA ) from the purchase of the XC-750 for years 6 to 10 : The incremental earnings (including CCA) for year 6 is $ The incremental earnings (including CCA ) for year 7 is $ The incremental earnings (including CCA ) for year 8 is $ [ The incremental earnings (including CCA ) for year 9 is $ [ The incremental earnings (including CCA ) for year 10 is $ (Round to the nearest dollar.) (Round to the nearest dollar.) (Round to the nearest dollar.) (Round to the nearest dollar.) I. (Round to the nearest dollar.) (Round to the nearest dollar.) (Round to the nearest dollar.) . (Round to the nearest dollar.) (Round to the nearest dollar.) (Round to the nearest dollar.) ]. (Round to the nearest dollar.)

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