Question: Billingham could instead purchase the X C - 9 0 0 , which offers even greater capacity. The cost o f the X C -

Billingham could instead purchase the XC-900, which offers even greater capacity. The cost of the XC-900is
$4.064.06
million. The extra capacity would not be useful in the first two years of operation, but would allow for additional sales in years 3-10. What level of additional sales (above the
$10.2010.20
million expected for the XC-750) per year in those years would justify purchasing the larger machine?
The additional sales are

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