Question
Daily enterprise is purchasing a $9.9 million machine. It will cost $54,000 to transport and install the machine. The machine has a depreciable life of
Daily enterprise is purchasing a $9.9 million machine. It will cost $54,000 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 $4.3 million per year along with incremental costs of 1.3 million per year. Dailys marginal tax rate is 21%. 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 1-5 will be $ ___ round to nearest dollar
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