Question: Daily Enterprises is purchasing a $10.1 million machine. It will cost $50,000 to transport and install the machine. The machine has a depreciable life of
Daily Enterprises is purchasing a $10.1 million machine. It will cost $50,000 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 with incremental costs of $1 3 million per year. Daily's marginal tax rate is 35%. You are forecasting incremental free cash flows for Daily Enterprises. What are the incremental f cash flows associated with the new machine? ree The free cash flow for year D will be S (Round to the nearest dollar) The free cash flow for years 1-5 will be (Round to the nearest dollar.)
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