Question: Daily Enterprises is purchasing a $10.5 million machine. It will cost $54,000 to transport and install the machine. The machine has a depreciable life of
Daily Enterprises is purchasing a $10.5 million machine. It will cost $54,000 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 $4.1 million per year along with incremental costs of $12 million per year. Daly's 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? The free cash flow for year o will be $ - 10554000 (Round to the nearest dollar) The free cash flow for years 1-5 will be s Round to the nearest dollar)
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