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Please Find the Net Present value Break-even level of revenues, assuming the costs are all fixed costs, show all steps Daily Enterprises is purchasing a
Please Find the Net Present value Break-even level of revenues, assuming the costs are all fixed costs, show all steps
Daily Enterprises is purchasing a $6.000.000 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 $7.000.000 per year along with fixed costs of $1,000,000 per year. If Daily's marginal tax rate is 25%, what will be the cash flow in each of years 1 to 6 (the cash flow will be the same each year)? Enter your answer rounded to the nearest whole number. Enter your answer below. 4750000 Correct response: 4,750,000:1 If the discount rate is 11%, what is the NPV of the project? The cash flow each year is $4.750,000 Enter your answer rounded to the nearest whole number. Enter your answer below. 14095054.81 Correct response: 14,095,055410 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. NumberStep by Step Solution
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