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. No marks will be given for answers without justification. (Round to the nearest hundredth. e.g., 55.16666 must be expressed as 55.17).

The answer can have a decimal point but should not use other characters such as a comma.

(a)What is the project NPV?(3 marks)

(b)What is the NPV break-even price?(3 marks)