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

If Daily's marginal tax rate is 34%, what will be the cash flow in each of years 1 to 7 (the cash flow will be the same each year)?

Using the discount rate, 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)?

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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.