What you see is part B, please answer parts B through E.

Billingham Packaging is considering expanding its production capacity by purchasing a new machine, the XC-750. Hire cost of for XC-750 is $2.66 million. Unfortunately, installing this machine will take several months and will partially disrupt production. the firm has just completed a $49.000 feasibility study to analyze the decision to buy the XC-750. resulting in the following estimates: Marketing: Once the XC-750 is operational next year, the extra capacity is expected to generate $10.00 million per year in additional sales, which will continue for the 10-year life of the machine. Operations: the disruption caused by the installation will decrease sales by $5 05 million this year As with Billingham'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 also require increased inventory on hand of $1.15 million during the life of the project, including year 0. Human Resources: the expansion will require additional sales and administrative personnel at a cost of $194 million per year. Accounting: the XC-750 will be depreciated via the straight-line method over the 10-year Life of the machine. the firm expects receivables from the new sales to be 14% of revenues and payables to be 10% of the cost of goods sold. Billingham's marginal corporate tax rate is 35% Determine the incremental earnings from the purchase of the XC-750. Determine the free cash flow from the purchase of the XC-750. If the appropriate cost of capital for the expansion is 10.1 %, compute the NPV of the purchase While the expected new sales will be $10.00 million per year from the expansion, estimates range from $7.90 million to $12.10 million. What is the NPV in the worst case? in the best case? What is the break-even level of new sales from the expansion? What is the breakeven level for the cost of goods sold? Calculate the free cash flow from the purchase of the XC-750 below (with vs. without XC?750): Incremental Effects