Daily Enterprises is purchasing a $10.36 million machine. It will cost $66,800.00 to transport and install...

Daily Enterprises is purchasing a $10.36 million machine. It will cost $66,800.00 to transport and install the machine. The machine has a depreciable life of five years using the straight-line depreciation and will have no salvage value. The machine will generate incremental revenues of $4.60 million per year along with incremental costs of $1.48 million per year. Daily’s marginal tax rate is 36.00%.

The cost of capital for the firm is 12.00%.

(answer in dollars..so convert millions to dollars)

What is the year 0 cash flow for the project?

What is the yearly cash flow from the project?

The project will run for 5 years. What is the NPV of the project at the current cost of capital?

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jeff jeffy answered 1 year ago

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