$1$ework

Question $6,$ P $9-33($similar to$)$

Part $1$ of $8$

HW Score: $85\mathrm{.}71\%,6$ of $7$ points

Points: $0$ of $1$

Human Resources: The expansion will require additional sales and administrative personnel at a cost of $$2\mathrm{.}07$ million per year. to be $11\%$ of the cost of goods sold. Billingham's marginal corporate tax rate is $25\%.$

a$.$ Determine the incremental earnings from the purchase of the XC$-750.$

b$.$ Determine the free cash flow from the purchase of the XC$-750.$

c$.$ If the appropriate cost of capital for the expansion is $9\mathrm{.}6\%,$ compute the NPV of the purchase.

e$.$ What is the break$-$even level of new sales from the expansion? What is the breakeven level for the cost of goods sold?

a$.$ Determine the incremental earnings from the purchase of the XC$-750.$

Calculate the incremental earnings from the purchase of the XC$-750$ below $($with vs$.$ without XC$-750)$: $($Round to the nearest dollar.$)$

Incremental Effects $($with vs$.$ without XC$-750)$