Question: Planet Enterprises is purchasing a $10.1 million machine. It will cost $52 000 to transport and install the machine. The machine has a depreciable life
Planet Enterprises is purchasing a $10.1 million machine. It will cost $52 000 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 $4.2 million per year along with incremental costs of $1.3 million per year Planet's marginal tax rate is 30%. You are forecasting incremental free cash flows for Daily Enterprises. What are the incremental free cash flows associated with the new machine
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