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Daily Enterprises is purchasing a $10.5 million machine. It will cost $46,000 to transport and install the machine. The machine has a depreciable life of

Daily Enterprises is purchasing a $10.5 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 $4.1 million per year along with incremental costs of $1.2 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?

Part 1/ The free cash flow for year 0 will be $?

Part 2/ The free cash flow for years 15 will be?

pls answer both / someone else got it wrong

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