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#8 pls help! ;) Daily Enterprises is purchasing a $10.1 million machine. It will cost $53,000 to transport and Install the machine. The machine has
#8 pls help! ;)
Daily Enterprises is purchasing a $10.1 million machine. It will cost $53,000 to transport and Install the machine. The machine has a depreciable life of b years using straight-line depreciaton and will have no salvage value. The machine will generate incremental revenues of $4.3 million per year along with incremental costs of $1.1 million per year. Daily's marginal tax rate is 28%. You are forecasting incremental free cash flows for Daily Enterprises. What are the incremental free cash flows associated with the new machine? The free cash flow for year 0 will be $ (Round to the nearest dollar.) The free cash flow for years 15 will be $ (Round to the nearest dollar.)Step by Step Solution
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