Question: Please answer for upvote Dream High is purchasing a new mochinery to make dream houses. it wal cost 52,000,000 to buy the machine and 520.000
Dream High is purchasing a new mochinery to make dream houses. it wal cost 52,000,000 to buy the machine and 520.000 to have it delivered and instaled Building a clean room in the plant for the machine wilt cost an additional $2 million. The mochine is expected to raise gross profits of 51.500.000 per year, starting ot the end of the first year, with the costs of 50.5 million for each of thote years. The machine is expected to have a working life of 10 years and wil be depreclated using straight line method over those ten years. The marginal tax tate is 35% What are the incremental free cash flows associated with the rew machine in year 3 ? Mutiple Choice 51500,000 $518,700 $2.020000 $720700 3575000
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