Daily Enterprises is purchasing a $$6,000,000$ machine. The machine will be depreciated using straight$-$line depreciation over its $9$ year life and will have no salvage value. The machine will generate revenues of $$7,000,000$ per year along with fixed costs of $$2,500,000$ per year.

If Daily's marginal tax rate is $32\%,$ what will be the cash flow in each of years $1$ to $9($the cash flow will be the same each year$)?$

If the discount rate is $5\%,$ what is the NPV of the project? The cash flow each year is $$3,273,333.$