Question: Daily Enterprises is purchasing a $9.7 million machine. It will cost $48,000 to transport and install the machine. The machine has a depreciable life of
Daily Enterprises is purchasing a $9.7 million machine. It will cost $48,000 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 $42 million per year along with incremental costs of $1.3 milion per year. Daily 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 new machine? The free cash flow for year will be $ -9.748.000) (Round to the nearest dollar) The free cash flow for years 1 5 will be $ 2.567,360 (Round to the nearest dollar)
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