Question: I have part A correct, need help with the rest. Thanks! firm has just completed a $49,000 feasibility study to analyze the decision to buy

 I have part A correct, need help with the rest. Thanks!

firm has just completed a $49,000 feasibility study to analyze the decision

to buy the XC-750, resulting in the following estimates: - Marketing: Once

I have part A correct, need help with the rest. Thanks!

firm has just completed a $49,000 feasibility study to analyze the decision to buy the XC-750, resulting in the following estimates: - Marketing: Once the XC-750 is operating next year, the extra capacity is expected to generate $10 million per year in additional sales, which will continue for the ten-year life of the machine. - Human Resources: The expansion will require additional sales and administrative personnel at a cost of $2.08 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. . If the appropriate cost of capital for the expansion is 9.6% compute the NPV of the purchase d. While the expected new sales will be $10 million per year from the expansion, estimates range from $7.95 million to $12.05 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? level of additional sales (above the $10 million expected for the XC-750) per year in those years would justify purchasing the larger machine? a. Determine the incremental earnings from the purchase of the XC-750. Calculate the incremental earnings from the purchase of the XC-750 below: (Round to the nearest dollar.) b. Determine the free cash flow from the purchase of the XC750. Calculate the free cash flow from the purchase of the XC750 : (Round to the nearest dollar.) (Round to the nearest dollar.) (Round to the nearest dollar.) Incremental Free Cash Flow c. If the appropriate cost of capital for the expansion is 9.6%, compute the NPV of the purchase. The NPV of the purchase is $ (Round to the nearest dollar.) d. While the expected new sales will be $10 million per year from the expansion, estimates range from $7.95 million to $12.05 million. What is the NPV in the worst case? In the best case? The NPV of the purchase for sales of $7.95 million is $ (Round to the nearest dollar.) The NPV of the purchase for sales of $12.05 million is $ (Round to the nearest dollar.) e. What is the break-even level of new sales from the expansion? The break-even level of new sales from the expansion is $ (Round to the nearest dollar.) What is the break-even level for the cost of goods sold as a percentage of sales? The break-even level for the cost of goods sold as a percentage of sales is \%. (Round to one decimal place.) level of additional sales (above the $10 million expected for the XC-750) per year in those years would justify purchasing the larger machine? The additional sales are $ (Round to the nearest dollar.)

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