Question: Daly Enterprises is purchasing a $10.2 mition machine, It will cost $45,000 to transport and install the machine. The machine has a dopeeciable life of
Daly Enterprises is purchasing a $10.2 mition machine, It will cost $45,000 to transport and install the machine. The machine has a dopeeciable life of Eve years uking straight-tine depreciation and will have no salvege value. The machine wit generate incremental revenues of $4.1 millon per year along with incremental costs of $1.1 milion per year. Daily's marginal tax rate is 35%. You are forecasting incrementai free cath flows for Daly Enterprises. What are the incremental tree cash flows associated with the new machine? The frie cash flow for year 0 will be 1 (Round to the nearest dollar.)
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