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Daily Enterprises is purchasing a $9.6 million machine. It will cost $51,000 to transport and install the machine. The machine has a depreciable life of

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Daily Enterprises is purchasing a $9.6 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 $4.2 million per year along with incremental costs of $1.3 million per year. Daily's marginal tax rate is 21%. 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.) Royal Mount Games would like to invest in a division to develop software for video games. To evaluate this decision, the firm first attempts to project the working capital needs for this operation. Its chief financial officer has developed the following estimates (in millions of dollars): (To copy the table below and use in Excel, click on icon in the upper right corner of table.) n 25 o Year 1 Year 2 Year 3 Year 4 Year 5 1 Cash 7 10 15 15 16 2 Accounts receivable 22 24 25 25 3 Inventory 9 10 13 16 4 Accounts payable 16 22 23 27 32 Assuming that Royal Mount currently does not have any working capital invested in this division, calculate the cash flows associated with changes in working capital for the first five years of this investment (Enter increases as negative numhare einra thou are nese nf rach The cash flow associated with the change in working capital for year 1 is $million. (Round to the nearest integer.)

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