Daily Enterprises is purchasing a

$ 10.2

million machine. It will cost

$ 48 comma 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

$ 4.2

million per year along with incremental costs of

$ 1.4

million per year. Daily's marginal tax rate is

35 %

.

You are forecasting incremental free cash flows for Daily Enterprises. What are the incremental free cash flows associated with the new machine? (question 4 of ch9)