Question: a) the free cash flow for year 0 will be? b) the free cash flow for years 1-5 will be? Daily Enterprises is purchasing a

a) the free cash flow for year 0 will be?

b) the free cash flow for years 1-5 will be?

Daily Enterprises is purchasing a $10.1 million machine. It will cost $52,000 to transport and install the machine. The machine has a depreciable life of five years using straight-line depreciation and will have no salvage value. The machine will generate incremental revenues of $4.1 million per year along with incremental costs of $1.1 milion per year. Daily's marginal tax rate is 21%. You are forecasting incremental free cash flows for Daly Enterprises. What are the incremental free cash flows associated with the new machine

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