Buckingham Packaging is considering expanding its production capacity by purchasing a new machine, the XC-750. The cost of the XC-750 is $2.73 million. Unfortunately, installing this machine will take several months and will partially disrupt production. The firm has just completed a $45,000 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 $10.20 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 $4.91 million this year. As with Buckingham'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 $1.05 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 $2.03 million per year. - Accounting: The XC-750 has a CCA rate of 30%, and no salvage value is expected. The firm expects receivables from the new sales to be 14% of revenues and payables to be 9% of the cost of goods sold. Buckingham's marginal corporate tax rate is 35%. Buckingham could instead purchase the XC-900, which offers even greater capacity. The cost of the XC900 is $4.08 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 kind of real option does the XC-900 machine provide to Buckingham? What kind of real option does the XC-900 machine provide to Buckingham? Select all that apply. A. If it would be beneficial to expand production, Buckingham will increase production with the XC900. B. The XC-900 allows Buckingham the option to expand production starting in year 3 . C. If it would be better if production remains the same, Buckingham is under no obligation to utilize all of the XC-900 production capacity. D. The expansion will require additional sales and administrative personnel