Question: Daily enterprises is purchasing a 1 0 million machine. It will cost 5 0 0 0 0 to transport and install the machine. The machine

Daily enterprises is purchasing a 10 million machine. It will cost 50000 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 million per year along with incremental cost of 1.2 million per year. Daily marginal tax rate is 21%. 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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