Your company is considering expanding its production capacity by purchasing a new machine. The cost of this new machine is $3 million. Installing this machine will partially disrupt production. The machine will be depreciated via the straight-line method over its 10-year life. This expansion of the production capacity will require additional sales and administrative personnel at a cost of $2 million per year. The new machine, once installed successfully, will generate $11.15 million per year in additional sales for the next 10 years. The disruption caused by the installation will decrease sales by $7 million in the current year. The cost of goods for the products produced by the new machine is expected to be 70% of their sale price. The increased production will require additional inventory on hand of $1 million to be added in year 0 and depleted in year 10. The firm expects receivables from the new sales to be 15% of revenues and payables to be 10% of the cost of goods sold. The marginal corporate tax rate of your firm is 28%. a. If the cost of capital for the expansion is 8%, compute the NPV of the purchase. b. What is the break-even level of new sales from the expansion