Question
expected to generate incremental revenues of$4.0million per year for the firm while also causing incromental costs of$1million per year. Reebok's marginal tax rate is30.0%. You
expected to generate incremental revenues of$4.0million per year for the firm while also causing incromental costs of$1million per year. Reebok\'s marginal tax rate is30.0%. You are forecasting incremental tree cash flows for feebok Lfo.
1. What is the incremental free cash flow associated with fbe new machine ati=0? The free cash flow ati=0will be 4 (Rotand your answer to the nearest dolfar)
2. What is the annual incremental free cash flows each year fromf=ltot=7? The annual free cash flow fromf=lorward will be$(Round yow answer to the nearest ololfar)
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