Question: 2 . Daily Enterprises is purchasing a $ 1 0 . 3 million machine. It will cost $ 5 5 , 0 0 0 to

2. Daily Enterprises is purchasing a $ 10.3million machine. It will cost $ 55,000to transport and install the machine. The machine has a depreciable life of 5years using straight - line depreciation and will have no salvage value. The machine will generate incremental revenues of $ 4.4million per year along with incremental costs of $ 1.4million per year. Daily's marginal tax rate is 25%.You are forecasting incremental free cash flows for Daily Enterprises. What are the incremental free cash flows associated with the new machine?

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