Daily Enterprises is purchasing a $$7,000,000$ machine. The machine will be depreciated using straight$-$line depreciation over its $6$ year life and will have no salvage value. The machine will generate revenues of $$8,000,000$ per year along with fixed costs of $$2,000,000$ per year.

If Daily's marginal tax rate is $25\%,$ 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.

$4791666\mathrm{.}6$

Correct response: $4,791,667+-1$

If the discount rate is $6\%,$ what is the NPV of the project? The cash flow each year is $$4,791,667.$

Enter your answer rounded to the nearest whole number.

Enter your answer below.

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

Enter your answer below.

Accept

Reject