1. Daily Enterprises is purchasing a $10 million machine. It will cost $50,000 to transport and install the machine. The machine has a depreciable life of three years using straight-line depreciation and will have zero salvage book value. however daily expects to be able to re sell the machine for 4 million at the end of year 3. the machine will generate incremental revenues of 8 million per year along with incremental COGS of 3.2 million per year for the next three years. Accounts receivable are expected to be 10% of sales until the beginning of year 3, while at the end of year 3 the increase in those accounts will be fully liquidited. marginal tax rate is 25%. you are forecasting incremental free cash flows for the purchase of this new machine. what are the incremental free cash flows associated with this new machine?

6. [10 points] Daily Enterprises is purchasing a $12 million machine. It will cost $150,000 to transport and install the machine. The machine has a depreciable life of three years using straight-line depreciation and will have zero salvage book value. However, Daily expects to be able to re-sell the machine for 4 million at the end of year 3 . The machine will generate incremental revenues of \$8 million per year along with incremental COGS of \$3.2 million per year for the next three years, at which point Daily plans to dispose of it. Accounts receivable are expected to be 10% of sales, while accounts payable are expected to be 10% of sales until the beginning of year 3 , while by the end of year 3 the increase in those accounts will be fully liquidated. Daily's marginal tax rate is 25%, You are forecasting incremental free cash flows for the purchase of this new machine by Daily Enterprises. What are the incremental free cash flows associated with the new machine? Question 3 [5 points] At time 0 ? Typed numeric answer will be automatically saved. Please type your answer to submit Unsaved: Please enter a valid