Please answer questions C and D

Buckingham Packaging is considering expanding its production capacity by purchasing a new machine, the XC-750. The cost of the XC750 is $3.00 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 operating next year, the extra capacity is expected to generate $12.0 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 $5 million this year (year 0 ). Once the machine is operating next year, the cost of goods for the products produced by the XC-750 is expected to be 70% of their sale price. The increased production will require additional inventory on hand of $1.5 million, to be added in year 0 and depleted in year 10. Human Resources: The expansion will require additional sales and administrative personnel at a cost of $2 million per year. Accounting: The XC-750 has a CCA rate of 35% and no salvage value is expected. The firm expects receivables from the new sales to be 12% of revenues and payables are expected to be 10% of the cost of goods sold. Buckingham's marginal corporate tax rate is 28%. c. If the appropriate cost of capital for the expansion is 14%, compute the NPV of the purchase (including all CCA tax shield effects). (Hint: when calculating the NPV, you should calculate the free cash flows excluding CCA tax shields then add the PV CCA tax shields to get the NPV.) d. While the expected new sales will be $12.0 million per year from the expansion, estimates range from $9,600,000 to $14,400,000. What is the NPV in the worst case? In the best case? c. If the appropriate cost of capital for the expansion is 14%, compute the NPV of the purchase. The NPV is $. (Round to the nearest dollar.)