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Question Help Daily Enterprises is purchasing a $9.8 million machine. It will cost $52,000 to transport and install the machine. The machine has a depreciable
Question Help Daily Enterprises is purchasing a $9.8 million machine. It will cost $52,000 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 $4.4 million per year along with incremental costs of $1.1 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 O will be $ (Round to the nearest dollar.) The free cash flow for years 15 will be $ (Round to the nearest dollar.)
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