Question: please fill in all parts lf the excel sheet based off the provide notes Using the following assumptions, Calculate the NPV and IRR for a

please fill in all parts lf the excel sheet based off the provide notes  please fill in all parts lf the excel sheet based off
the provide notes Using the following assumptions, Calculate the NPV and IRR

Using the following assumptions, Calculate the NPV and IRR for a Base Case, a Downside Case, and an Upalde Case Note that the worksheet has spacas for esch case, set up (hopefully) in print friendly format. Assumptions: Khston Packaging is considedny expanding ts capacily by purchasing a new machine, the XC450. The cost is $2.75 milion. Unfortunately, histaling tha machine wal take severai months and wal partialy disupt current production. The frm has just corppleted a $50,000 fessbility atudy to analyze the decision to buy the XC-750, resuting in the folowing estimates: Motketine: Once the XC.750 is operational next year, the extre capachy is expected to genecate $10 milion per year in addibonal sales: which wit continue for the ten-year lile of the machine. Operations Operitions: The disuption caused by the instalotion wit decrease sales by $5 miltion this year. As wath Kinston's existing products, the cost of goods for the producted produced by the XC-750 is expected to be 64% of their sale price. The increased production we also require incressed inventory on hand of $1 milion during the lile of the project, including year 0. Human Rinourees: Human Rosounees: The expansion will roquire additional sales and adminutrative personnel at a cost of $2 million per year. Acoounting: The XC-750 wil be depreclated via the stinight ine method over the ten-year He of the machine. Khaten's marginal tax rate is 27%. No salvage value is assumed for the machine. COCs instactions Whib the base case astumptions seem teasonable, she believes that actual saies could nange from $8 millon to $12 milion

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