Question: Daily Enterprises is purchasing a $ 1 0 . 2 million machine. It will cost $ 5 0 3 0 0 0 to transport and
Daily Enterprises is purchasing a $ million machine. It will cost $ to transport and install the
machine. The machine has a depreciable life of five years using straightline depreciation and will have
no salvage value. The machine will generate incremental revenues of $ million per year along with
incremental costs of $ million per year. Daily's marginal tax rate is You are forecasting
incremental free cash flows for Daily Enterprises. What are the incremental free cash flows associated
with the new machine?
The free cash flow for year will be $
Round to the nearest dollar.
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