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For the next two questions, a + sign is optional for any answer that is a net cash inflow, but a . sign is mandatory
For the next two questions, a "+" sign is optional for any answer that is a net cash inflow, but a "." sign is mandatory for any answer that is a net cash outflow. Reebok Ltd is purchasing a $7.2 million machine, which will cost the firm an additional $43,000 to have the machine transported and installed ready for use. The machine is depreciated to a value of zero over a tax life of 6 years via the straight-line method. It will also be worthless in the salvage market at this time. The machine is expected to generate incremental revenues of $4.9 million per year for the firm while also causing incremental costs of $1.7 million per year. Reebok's marginal tax rate is 35.0%. You are forecasting incremental free cash flows for Reebok Ltd (a) What is the incremental free cash flow associated with the new machine at t=0? The free cash flow at t=0 will be $ (Round your answer to the nearest dollar (b) What is the annual incremental free cash flows each year from t=1 to t6? The annual free cash flow from t=1 onward will be $ (Round your answer to the nearest dollar
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