Question: Daily Enterprises is purchasing a $9,000,000 machine. The machine will be depreciated using straight-line depreciation over its 5 year life and will have no salvage

Daily Enterprises is purchasing a $9,000,000 machine. The machine will be depreciated using straight-line depreciation over its 5 year life and will have no salvage value. The machine will generate revenues of $6,500,000 per year along with fixed costs of $2,500,000 per year.

If Daily's marginal tax rate is 39%, what will be the cash flow in each of years 1 to 5 (the cash flow will be the same each year)?

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