Daily Enterprises is purchasing a $10.53 million machine. It will cost $78,936.00 to transport and install the machine. The machine has a depreciable life of five years using the straight-line depreciation and will have no salvage value. The machine will generate incremental revenues of $4.08 million per year along with incremental costs of $1.11 million per year. Dailys marginal tax rate is 38.00%.

The cost of capital for the firm is 14.00%.

(answer in dollars..so convert millions to dollars)

a) What is the year 0 cash flow for the project?

b) What is the yearly cash flow from the project?

c) The project will run for 5 years. What is the NPV of the project at the current cost of capital?