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

Daily Enterprises is purchasing a $6,000,000 machine. The machine will be depreciated using straight-line depreciation over its 6-year life and will have no salvage value. The only costs are fixed costs of $2,000,000 per year. What is the net present value break-even level of sales revenue if the tax rate is 40 percent and the discount rate is 10 percent?

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