Daily Enterprises is purchasing a $9.7 million machine. It will cost $52,000 to transport and install the machine. The machine has a depreciable life of five years and will have no salvage value. If Daily uses straight-line depreciation, what are the depreciation expenses associated with this machine? The yearly depreciation expenses are $. (Round to the nearest dollar.) You have just completed a $17,000 feasibility study for a new coffee shop in some retail space you own. You bought the space two years ago for $99,000, and if you sold it today, you would net $116,000 after taxes. Outfitting the space for a coffee shop would require a capital expenditure of $27,000 plus an initial investment of $5,200 in inventory. What is the correct initial cash flow for your analysis of the coffee shop opportunity? Identify the relevant incremental cash flows below: (Select all the choices that apply.) CA. Capital expenditure to outfit the space. B. Initial investment in inventory. C. Price you paid for the space two years ago. D. Feasibility study for the new coffee shop. LE. Amount you would net after taxes should you sell the space today. Calculate the initial cash flow below: (Select from the drop-down menus and round to the nearest dollar.) 1 $ 2 $ 3 $ 4 Free Cash Flow $ Daily Enterprises is purchasing a $9.7 million machine. It will cost $52,000 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 $4.3 million per year along with incremental costs of $1.3 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 will be $ (Round to the nearest dollar.) You purchased a machine for $1.07 million three years ago and have been applying straight-line depreciation to zero for a seven-year life. Your tax rate is 35%. If you sell the machine today (after three years of depreciation) for $760,000, what is your incremental cash flow from selling the machine? Your total incremental cash flow will be $. (Round to the nearest cent.) Daily Enterprises is purchasing a $9.7 million machine. It will cost $52,000 to transport and install the machine. The machine has a depreciable life of five years and will have no salvage value. If Daily uses straight-line depreciation, what are the depreciation expenses associated with this machine? The yearly depreciation expenses are $. (Round to the nearest dollar.) You have just completed a $17,000 feasibility study for a new coffee shop in some retail space you own. You bought the space two years ago for $99,000, and if you sold it today, you would net $116,000 after taxes. Outfitting the space for a coffee shop would require a capital expenditure of $27,000 plus an initial investment of $5,200 in inventory. What is the correct initial cash flow for your analysis of the coffee shop opportunity? Identify the relevant incremental cash flows below: (Select all the choices that apply.) CA. Capital expenditure to outfit the space. B. Initial investment in inventory. C. Price you paid for the space two years ago. D. Feasibility study for the new coffee shop. LE. Amount you would net after taxes should you sell the space today. Calculate the initial cash flow below: (Select from the drop-down menus and round to the nearest dollar.) 1 $ 2 $ 3 $ 4 Free Cash Flow $ Daily Enterprises is purchasing a $9.7 million machine. It will cost $52,000 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 $4.3 million per year along with incremental costs of $1.3 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 will be $ (Round to the nearest dollar.) You purchased a machine for $1.07 million three years ago and have been applying straight-line depreciation to zero for a seven-year life. Your tax rate is 35%. If you sell the machine today (after three years of depreciation) for $760,000, what is your incremental cash flow from selling the machine? Your total incremental cash flow will be $. (Round to the nearest cent.)
