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Compute the Cashflow for Year 1-5 box Daily Enterprises is purchasing a $10.4 million machine. It will cost $46,000 to transport and install the machine.

Compute the Cashflow for Year 1-5 box image text in transcribed

Daily Enterprises is purchasing a $10.4 million machine. It will cost $46,000 to transport and install the machine. The machine has a depreciable life of five years using straight-line depreciation and will have no salvage value. The machine will generate incremental revenues of $4.4 million per year along with incremental costs of $1.5 million per year. Daily's marginal tax rate is 35%. 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 $ - 10,446,000 . (Round to the nearest dollar.) The free cash flow for years 1-5 will be $ (Round to the nearest dollar.)

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