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Daily Enterprises is purchasing a $11,000,000machine. The machine will be depreciated using straight-line depreciation over its 7 year life and will have no salvage value.
Daily Enterprises is purchasing a $11,000,000machine. The machine will be depreciated using straight-line depreciation over its 7 year life and will have no salvage value. The machine will generate revenues of $5,500,000per year along with fixed costs of $1,000,000per year.
If Daily's marginal tax rate is 30%, what will be the cash flow in each of years 1 to 7 (the cash flow will be the same each year)?
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