Question: completed a $49,000 feasibility study to analyze the decision to buy the XC-750, resulting in the following estimates: - Human Resources: The expansion will require

completed a $49,000 feasibility study to analyze the decision to buy the XC-750, resulting in the following estimates: - Human Resources: The expansion will require additional sales and administrative personnel at a cost of $1.91 million per year. 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 10.3%, compute the NPV of the purchase. d. While the expected new sales will be $10.15 million per year from the expansion, estimates range from $8.1 million to $12.2 million. What is the NPV in the worst case? In the best case? e. What is the break-even level of new sales from the expansion? What is the break-even level for the cost of goods sold as a percentage of sales? (above the $10.15 million expected for the XC-750) per year in those years would justify purchasing the larger machine? completed a $49,000 feasibility study to analyze the decision to buy the XC-750, resulting in the following estimates: - Human Resources: The expansion will require additional sales and administrative personnel at a cost of $1.91 million per year. 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 10.3%, compute the NPV of the purchase. d. While the expected new sales will be $10.15 million per year from the expansion, estimates range from $8.1 million to $12.2 million. What is the NPV in the worst case? In the best case? e. What is the break-even level of new sales from the expansion? What is the break-even level for the cost of goods sold as a percentage of sales? (above the $10.15 million expected for the XC-750) per year in those years would justify purchasing the larger machine
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