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c.)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.
c.)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.
Daily Enterprises is purchasing a $5,000,000 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 $9,000,000 per year along with fixed costs of $1,000,000 per year. If Daily's marginal tax rate is 32%, 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. Correct respense: 5,760,0001 If the discount rate is 6%, what is the NPV of the project? The cash flow each year is $5,760,000. Enter your answer rounded to the nearest whole number. Enter your answer below. Should Daily accept or reject the project (choose one)? Enter your answer below. Accept RejectStep by Step Solution
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