pls solve a-f

Billingham Packaging is considering expanding its production capacity by purchasing a new machine, the XC-750. The cost of the XC-750 is $2.86 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 operational next year, the extra capacity is expected to generate $10.05 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 $5.07 million this year. As with Billingham's existing products, the cost of goods for the products produced by the XC-750 is expected to be 74% of their sale price. The increased production will also require increased inventory on hand of $1.08 million during the life of the project, including year o. Human Resources: The expansion will require additional sales and administrative personnel at a cost of $1,97 million per year Accounting: The XC-750 will be depreciated via the straight-line method over the 10-year life of the machine. The firm expects receivables from the new sales to be 16% of revenues and payables to be 11% of the cost of goods sold. Billingham's marginal corporate tax rate is 21%. 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 10.5% compute the NPV of the ourchase. BECORD a. Determine the incremental earnings from the purchase of the XC-750 Calculate the incremental earnings from the purchase of the XC-750 below (with vs without XC7750): (Round to the nearest dollar) Incremental Effects (with vs. without XC-750) Year 0 1-10 Sales Revenues $ Cost of Goods Sold SG, and A Expenses Depreciation 0 a. Determine the incremental earnings from the purchase of the XC-750 Calculate the incremental earnings from the purchase of the XC-750 below (with vs. without XC7750): (Round to the nearest dollar.) Incremental Effects (with vs. without XC-750) Year 1-10 Sales Revenues Cost of Goods Sold S, G, and A Expenses Depreciation EBIT Taxes at 21% Unlevered Net Income $ Help me solve this View an example Get more help Billingham Packaging is considering expanding its production capacity by purchasing a new machine, the XC-750. The cost of the XC-750 is $2.86 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 operational next year, the extra capacity is expected to generate $10.05 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 $5.07 million this year. As with Billingham's existing products, the cost of goods for the products produced by the XC-750 is expected to be 74% of their sale price. The increased production will also require increased inventory on hand of $1.08 million during the life of the project, including year o. Human Resources: The expansion will require additional sales and administrative personnel at a cost of $1,97 million per year Accounting: The XC-750 will be depreciated via the straight-line method over the 10-year life of the machine. The firm expects receivables from the new sales to be 16% of revenues and payables to be 11% of the cost of goods sold. Billingham's marginal corporate tax rate is 21%. 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 10.5% compute the NPV of the ourchase. BECORD a. Determine the incremental earnings from the purchase of the XC-750 Calculate the incremental earnings from the purchase of the XC-750 below (with vs without XC7750): (Round to the nearest dollar) Incremental Effects (with vs. without XC-750) Year 0 1-10 Sales Revenues $ Cost of Goods Sold SG, and A Expenses Depreciation 0 a. Determine the incremental earnings from the purchase of the XC-750 Calculate the incremental earnings from the purchase of the XC-750 below (with vs. without XC7750): (Round to the nearest dollar.) Incremental Effects (with vs. without XC-750) Year 1-10 Sales Revenues Cost of Goods Sold S, G, and A Expenses Depreciation EBIT Taxes at 21% Unlevered Net Income $ Help me solve this View an example Get more help