Question: Daily Enterprises is purchasing a $13,000,000 machine. The machine will be depreciated using straight-line depreciation over its 8 year life and will have no salvage


Daily Enterprises is purchasing a $13,000,000 machine. The machine will be depreciated using straight-line depreciation over its 8 year life and will have no salvage value. The machine will generate revenues of $7,500,000 per year along with fixed costs of $3,000,000 per year. If Daily's marginal tax rate is 38%, what will be the cash flow in each of years 1 to 8 (the cash flow will be the same each year)? Enter your answer rounded to the nearest whole number. Enter your answer below. 3407500 Correct response: 3,407,500+1 If the discount rate is 13%, what is the NPV of the project? The cash flow each year is $3,407,500. Enter your answer rounded to the nearest whole number. Enter your answer below. 3351809 Correct response: 3,351,810-10 Should Daily accept or reject the project (choose one)? Enter your answer below. 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. Number
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