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Daily enterprise is purchasing a $10.2 million machine. It will cost $47,000 to transport and install the machine. The machine has a depreciation life of
Daily enterprise is purchasing a $10.2 million machine. It will cost $47,000 to transport and install the machine. The machine has a depreciation life of five years using straight line depreciation and will have no salvage value. The machine will generate incremental revenue of $3.9 million per year along with incremental costs of $1.1 million per year. Daily's marginal tax rat his 35%. You are forecasting incremental free cash flows for Daily Enterprises. What are the incremental free cash flows associated with the new machine
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