Please Include Excel Formulas as well, Thank you!

Billingham Packaging is considering expanding its production capacity by purchasing a new machine, the XC-750. The cost of the XC-750 is $2.75 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 S10 million per year in additional sales, which will continue for the ten-year life of the machine. Operations: The disruption caused by the installation will decrease sales by S5 million this year. As with Billingham's existing products, the cost of goods or the products produced by the XC-75 is expected to be 70% of er sale price. The increase produc on w a s re i encreased myento on hand of S1 million during the life of the project. The increased production will require additional inventory of SIM, 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 S2 million per year. Accounting The XC-750 will be depreciated via the straight-line method in years l 10. Receivables are expected to be l 5% of revenues and payables to be 10% of the cost of goods sold. Billingham's marginal corporate tax rate is 35%. Cost of Capital: Billingham Packaging believes that the new project has the same cost of capital as its current assets. Currently, Billingham Packagings equity financed. Its equity beta is 1.4. The risk-free rate is 3%, and the market risk premium is 5%. 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. Compute the NPV of the cxpansion project. Tax rate Cost of goods as a % of sales First year sales value 35.00%) 70.00% 10,000.00