Question: Daily Enterprises is purchasing a $9.9 million machine. It wil cost $51,000 to transport and install the machine. The machine has a degreciabie ifo of
Daily Enterprises is purchasing a $9.9 million machine. It wil cost $51,000 to transport and install the machine. The machine has a degreciabie ifo of fve yeacs using straight-ine deprociafion and wit have no salvage value. The machine will generate incremental revenues of $4.1 milion per year along with incremental costs of \$1.2 million per year, Daly's marginal tax rate is 35%. You ave forecatefing incremental free cash fows for Daly Enterprises. What are the lncremental free cash flows associated with the new machine? The free cash flow for year 0 wil be? (Round to the nearest dolar.)
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