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Daily Enterprises is purchasing a $13,000,000 machine. The machine will be depreciated using straight-line depreciation over its 7 year life and will have no salvage
Daily Enterprises is purchasing a $13,000,000 machine. The machine will be depreciated using straight-line depreciation over its 7 year life and will have no salvage value. The machine will generate revenues of $8,000,000 per year along with fixed costs of S1,000,000 per year. If Daily's marginal tax rate is 35%, what will be the cash flow in each of years 1 to 7 (the cash flow will be the same each year)? Enter your answer rounded to the nearest whole number. Enter your answer below. 5200000 Correct response: 5,200,02011 If the discount rate is 12%, what is the NPV of the project? The cash flow each year is $5,200,000. Enter your answer rounded to the nearest whole number. Enter your answer below. 10731534 Correct response: 10,731,534-10 Should Daily accept or reject the project (choose one)? Enter your answer below. Accept Reject Correct response: Accept 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. Number
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