Question
9.Daily Enterprises is purchasing a$ 9.9million machine. It will cost$51,000to transport and install the machine. The machine has a depreciable life of five years usingstraight-line
9.Daily Enterprises is purchasing a$ 9.9million machine. It will cost$51,000to transport and install the machine. The machine has a depreciable life of five years usingstraight-line depreciation and will have no salvage value. The machine will generate incremental revenues of$ 4.3million per year along with incremental costs of$1.2million per year.Daily's marginal tax rate is35%.
You are forecasting incremental free cash flows for Daily Enterprises. What are the incremental free cash flows associated with the newmachine?The free cash flow for year 0 will be $___.(Round to the nearestdollar.)
The free cash flow for years1-5will be$__.(Round to the nearestdollar.)
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