Question: Planet Enterprises is purchasing a $ 9.9 million machine. It will cost $ 47 000 to transport and install the machine. The machine has a
Planet Enterprises is purchasing a $ 9.9 million machine. It will cost $ 47 000 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 $ 3.9 million per year along with incremental costs of $ 1.2 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?

Planet Enterprises is purchasing a $9.9 million machine. It will cost $47 000 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 o $3.9 million per year along with ncremental costs of $1.2 million per year. Planet's marginal tax rate is 30% You are forecasting incremental free cash flows or Da y Enterprises. What are the incremental free cash flows associated with the new machine? The free cash flow for year O will be s(Round to the nearest dollar.)
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