1.a).

Daily Enterprises is purchasing a $13,000,000 machine. The machine will depreciated using straight-line depreciation over its 9 year life and will have no salvage value. The machine will generate revenues of $6,500,000 per year along with costs of $4,000,000 per year.

If Daily's marginal tax rate is 27%, what will be the cash flow in each of years one to 9 (the cash flow will be the same each year)? Enter your answer below rounded to the nearest whole number.

b) A project requires an increase in net working capital of $295,000 at time 0 that will be recovered at the end of its 18 year life. If opportunity cost of capital is 9%, what is the effect on the NPV of the project? Enter your answer rounded to two decimal places.