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 manhino bu nailu Fnternrises. What are the incremental free cash flows associated with the new machine? Question 7 [5 points] You have just completed a $50,000 feasibility study for a new coffee shop in some retail space you own. You bought the space two years ago for $500,000, and if you sold it today, you would net $400,000 after taxes. Outfitting the space for a coffee shop would require a capital expenditure of $50,000 plus an initial investment of $15,000 in inventory. What is the initial cash flow (CFO) for your analysis of the coffee shop investment opportunity