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PLEASE IGNORE THE NUMBER IN THE BOX! answer the question with both parts answered! Daily Enterprises is purchasing a $9.8 million machine. It will cost

image text in transcribedimage text in transcribedPLEASE IGNORE THE NUMBER IN THE BOX! answer the question with both parts answered!

Daily Enterprises is purchasing a $9.8 million machine. It will cost $54,000 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 $4.2 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 0 will be $ - 10,350,000. (Round to the nearest dollar.) The free cash flow for years 1-5 will be $ . (Round to the nearest dollar.)

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