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Daily Enterprises is purchasing a $ 9 . 6 million machine. It will cost $ 5 0 , 0 0 0 to transport and install
Daily Enterprises is purchasing a $ million machine. It will cost $ to transport and install the machine. The machine has a depreciable life of five years using straightline depreciation and will have no salvage value. The machine will generate incremental revenues of $ million per year along with incremental costs of $ million per year. Daily's marginal tax rate is 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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