Question: Daily enterprise is purchasing a $9.5 million machine. It will cost $51,000 to transport and install the machine. The Machine has a depreciable life of
Daily enterprise is purchasing a $9.5 million machine. It will cost $51,000 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 $4.3 million per year along incremental costs of $1.2 million per year. Dailys marginal tax rate is 21%. You are forecasting incremental free cash flows for Daily enterprisess. What are the incremental free cash flows associated with the new maxchine?
1- The free cash flows for year 0 will be $
2 -The free cash flows for years 1-5 will be $___
Step by Step Solution
There are 3 Steps involved in it
1 Expert Approved Answer
Step: 1 Unlock
Question Has Been Solved by an Expert!
Get step-by-step solutions from verified subject matter experts
Step: 2 Unlock
Step: 3 Unlock
