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Planet Enterprises is purchasing a $9.7 million machine. It will cost $53 000 to transport and install the machine. The machine has a depreciable life
Planet Enterprises is purchasing a $9.7 million machine. It will cost $53 000 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 $3.9 million per year along with incremental costs of $1.2 million per year. Planet's marginal tax rate is 30%. 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.) The free cash flow for years 1-5 will be $. (Round to the nearest dollar.)
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