Question
Daily Enterprises is purchasing a $ 10.3 $10.3 million machine. It will cost $ 49 comma 000 $49,000 to transport and install the machine. The
Daily Enterprises is purchasing a $ 10.3
$10.3 million machine. It will cost $ 49 comma 000
$49,000 to 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 $ 4.4
$4.4 million per year along with incremental costs of $ 1.3
$1.3 million per year.Daily's marginal tax rate is 35 %
35%. 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.)
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