Bilingham Packaging is considering expanding its production capacity by purchasing a new machine, the XC-750. The cost of the XC-750 is $2.69 million. Unfortunately, installing this machine will take several months and will partially disrupt 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 operational next year, the extra capacity is expected to generate $10.05 million per year in additional sales, which will continue for the 10-year life of the machine. Operations: The disruption caused by the instalation will decrease sales by $4.92 milion this year. As with Billingham's existing products, the cost of goods for the products produced by the XC-750 is expected to be 75% of their sale price. The increased production will also require increased inventory on hand of $1.09 million during the life of the project, including yearo Human Resources: The expansion will require additional sales and administrative personnel at a cost of $2.04 million per year The XC 750 I t e dep ted via the strigt t line mee dover the 10 year ife of he ma i ine The finn e pects receivable hom the new sales to be 15% of revenues and payables to be 1 1% of the cost of goods sold. Bilingham's marginal corporate tax rate is 35%