Question: Determining Incremental Free Cash How Cameron Industries is purchasing a new chemical vapor depositor is order to make silicon chips. It will cost 5 5

Determining Incremental Free Cash How
Cameron Industries is purchasing a new chemical vapor depositor is order to make silicon chips. It will cost 55,000,000 to buy the machine and $10,000 to have is delivered and inatalied. The machine is expected to raise revenues by $4,500,000 per year, starting at the end of the first yea, inith associated costs of $1 milion for each of thove years. The machine is expected to have a working life of slx vears and all be depreciated aver those sk years. The marginal tax rate is 404. What are the incremental free canh flows associated with the few machine is year 2?
$2,434,000
7,405,000
81235,000
51,434,000
Determining Incremental Free Cash How Cameron

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