Question: Daily Enterprises is purchasing a $15,000,000 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 $15,000,000 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 $5,000,000 per year along with costs of $1,500,000 per year.

If Daily's marginal tax rate is 31%, 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. Correct response: 2,996,2501

Given annual cash flows of $2,996,250, if the discount rate is 11%, what is the NPV of the project?

Enter your answer rounded to the nearest whole number.

_________

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

Enter your answer below.

		Accept
		Reject

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