A) Daily Enterprises is purchasing a $13,000,000 machine. The machine will be depreciated using straight-line depreciation over its 6 year life and will have no salvage value. The machine will generate revenues of $10,000,000 per year along with fixed costs of $3,500,000 per year.

If Daily's marginal tax rate is 32%, what will be the cash flow in each of years 1 to 6 (the cash flow will be the same each year)?. Correct response: 5,113,3331

B) If the discount rate is 12%, what is the NPV of the project? The cash flow each year is $5,113,333.

Enter your answer rounded to the nearest whole number.

Enter your answer below.

Correct response: 8,022,996100

Should Daily accept or reject the project (choose one)? Correct response: Accept

ANSWER ONLY QUESTION BELOW

Find the Net Present value Break-even level of revenues, assuming the costs are all fixed costs. Enter your answer rounded to the nearest whole number.