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1. 2 Daily Enterprises is purchasing a $12,000,000 machine. The machine will be depreciated using straight-line depreciation over its 7 year life and will have
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Daily Enterprises is purchasing a $12,000,000 machine. The machine will be depreciated using straight-line depreciation over its 7 year life and will have no salvage value. The machine will generate revenues of $8,000,000 per year along with costs of $1,500,000 per year. If Daily's marginal tax rate is 30%, what will be the cash flow in each of years 1 to 7 (the cash flow will be the same each year)? Enter your answer rounded to the nearest whole number. Enter your answer below. You estimate that your sheep farm will generate 2.8 million of profits on sales of 8 million under normal economic conditions, and that the degree of operating leverage is 3.4. What will sales be if profits turn out to be 3.1 million? Enter your answer in millions, rounded to two decimal places. millionStep by Step Solution
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