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 $ 9.7$9.7 million machine. It will cost $ 53 comma 000$53,000 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 $ 3.9$3.9 million per year along with incremental costs of $ 1.4$1.4 million per year. Daily's marginal tax rate is 35%35%. 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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