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Daily Enterprises is purchasing a $ 9 . 7 million machine. It will cost $ 5 1 , 0 0 0 to transport and install

Daily Enterprises is purchasing a $9.7 million machine. It will cost $51,000 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?
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 the nearest dollar.)
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