Question: Daily Enterprises is purchasing a $ 9 . 7 $ 9 . 7 million machine. It will cost $ 5 3 comma 0 0 0
Daily Enterprises is purchasing a $ $ million machine. It will cost $ comma $ to transport and install the machine. The machine has a depreciable life of five years using straightline depreciation and will have no salvage value. The machine will generate incremental revenues of $ $ million per year along with incremental costs of $ $ million per year. Daily's marginal tax rate is 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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