Question: need help with both plz answer both Daily Enterprises is purchasing a $9.7 million machine. It will cost $51,000 to transport and install the machine.

Daily Enterprises is purchasing a $9.7 million machine. It will cost $51,000 to transport and install the machine. The machine has a depreciable life of five years and will have no salvage value. The machine will generate incremental revenues of $4.2 million per year along with incremental costs of $1.4 million per year. If Daily's marginal tax rate is 21%, what are the incremental earnings (net income) associated with the new machine? The annual incremental earnings are $ (Round to the nearest dollar.) You are evaluating a new product. In year 3 of your analysis, you are projecting pro forma sales of $5.7million and cost of goods sold of $3.42 million. You will be depreciating a $1 million machine for 5 years using straight-line depreciation. Your tax rate is 38%. Finally, you expect working capital to increase from $190,000 in year 2 to $295,000 in year 3 . What are your pro forma earnings for year 3 ? What are your pro forma free cash flows for year 3 ? Complete the following pro forma statement. (Round to the nearest dollar.)
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