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Daily Enterprises is purchasing a $10.45 million machine. It will cost $74,306.00 to transport and install...
Daily Enterprises is purchasing a $10.45 million machine. It will cost $74,306.00 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 $4.35 million per year along with incremental costs of $1.39 million per year. Daily’s marginal tax rate is 36.00%. The cost of capital for the firm is 14.00%. (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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Expert Solution
NPV of the project at the current cost of capital is -$1,429,260.20
jeff jeffy answered 2 years agoRelated Solutions
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