Daily Enterprises is purchasing a $10.4 million machine. It will cost $ 48,000 to transport and install
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Daily Enterprises is purchasing a $10.4 million machine. It will cost $ 48,000 to transport and install the machine. The machine has a depreciable life of five years usingstraight-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 free cash flows associated with the newmachine?
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