Question
PLEASE ANSWER THE LAST BOLDED QUESTION! Daily Enterprises is purchasing a $6,000,000 machine. The machine will be depreciated using straight-line depreciation over its 7 year
PLEASE ANSWER THE LAST BOLDED QUESTION!
Daily Enterprises is purchasing a $6,000,000 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 $5,500,000 per year along with fixed costs of $4,000,000 per year. If Daily's marginal tax rate is 37%, 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. Correct response: 1,262,1431
If the discount rate is 8%, what is the NPV of the project? The cash flow each year is $1,262,143. Enter your answer rounded to the nearest whole number. Correct response: 571,183100 Should Daily accept or reject the project (choose one)? Enter your answer below. 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?
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