URI Corporation can invest $10 million in a new machine. The machine has an expected life of 10 years, and the expected increase in sales volume is 5 million per year. Fixed costs will increase by $1 million a year, and variable costs are $1 per quantity sold. The product price is $5 each. The machine is depreciable on a declining balance basis over 10 years to a salvage value of $1 million.The opportunity cost of capital is 15% and the tax rate (T) is 40%. Show all work to receive marks.

(a) What is the project NPV?

(b)What is the NPV break-even price?