Question: Daily Enterprises is purchasing a $5,000,000 machine. The machine will be depreciated using straight- line depreciation over its 6 year life and will have no

 Daily Enterprises is purchasing a $5,000,000 machine. The machine will be
depreciated using straight- line depreciation over its 6 year life and will

Daily Enterprises is purchasing a $5,000,000 machine. The machine will be depreciated using straight- line depreciation over its 6 year life and will have no salvage value. The machine will generate revenues of $7,000,000 per year along with fixed costs of $3,000,000 per year If Daily's marginal tax rate is 37%, 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 Enter your answer below 2828333.34 Correct response: 2,828, 333:1 W o If the discount rate is 9%, what is the NPV of the project? The cash flow each year is $2,828,333 Enter your answer rounded to the nearest whole number Enter your answer below 7687672 Correct responset 7,687,673100 > If the discount rate is 9%, what is the NPV of the project? The cash flow each year is $2,828,333 Enter your answer rounded to the nearest whole number Enter your answer below 7687672 Correct response: 7,687,673100 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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