URI corporation can invest $10 millions in a new machine. The machine has an expected life of 10 years, and the expected increase in sales volume is $5 millions per year. Fixed cost will increase by $1 million per 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%.

a)What is the project NPV?

b)What is the NPV break-even price?