Daily Enterprises is purchasing a $$10,000,000$ machine. The machine will be depreciated using straightline depreciation over its $6$ year life and will have no salvage value. The machine will generate revenues of $$10,000,000$ per year along with fixed costs of $$2,000,000$ per year.

If Daily's marginal tax rate is $26\%,$ 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.

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$6,353,333$

Correct response: $6,353,333+-1$

If the discount rate is $9\%,$ what is the NPV of the project? The cash flow each year is $$6,353,333.$ Enter your answer rounded to the nearest whole number.

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$28,302,976$

Correct response: $18,500,536+-100$

Should Daily accept or reject the project $($choose one$)?$

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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.