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Dream High is purchasing a new machinery to make dream houses. It will cost $2,000,000 to buy the machine and $20.000 to have it dellvered

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Dream High is purchasing a new machinery to make dream houses. It will cost $2,000,000 to buy the machine and $20.000 to have it dellvered and installed. Building a clean room in the plant for the machine will cost an additional \$2 million. The machine is expected to raise gross profits of $1,500.000 per year, starting at the end of the first year, with the costs of $0.5 million for each of those years. The machine is expected to have a working life of 10 years and will be depreciated using straight line method oven those ten years. The marginal tax rate is 35%. What are the incremental free cash flows assoclated with the new machine in year 3 ? Muitiple Choice $518700 0. $575,000 $720.700 $1,500,000 $2,020,000

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