A

B

Daily Enterprises is purchasing a $10,000,000 machine. The machine will be depreciated using straight-line depreciation over its 5 year life and will have no salvage value. The machine will generate revenues of $8,000,000 per year along with costs of $3,500,000 per year. If Daily's marginal tax rate is 33%, what will be the cash flow in each of years 1 to 5 (the cash flow will be the same each year)? Enter your answer rounded to the nearest whole number. Enter your answer below. Number You are considering producing a new product, which if it is successful will produce cash flows of $31,000 per year in perpetuity. If it is unsuccessful, the cash flow will be -$22,000 in the first year and then you will shut down. If the probability of success is 0.8 and the opportunity cost of capital is 12 percent, what is the maximum that you would be willing to pay to undertake the investment? Enter your response below. Number