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Thank you for your help! I really appreciate it. 1. Daily Enterprises is purchasing a $10,000,000 machine. It will cost $50,000 to transport and install
Thank you for your help! I really appreciate it. 1. Daily Enterprises is purchasing a $10,000,000 machine. It will cost $50,000 to transport and install the machine. The machine has a depreciable life of five years and will have no salvage value. The machine will generate incremental revenues of $4,000,000 per year along with incremental costs of $1,200,000 per year. If Daily's marginal tax rate is 35%, what are the incremental earnings (net income) associated with the new machine? 2. Daily Enterprises is purchasing a $10,000,000 machine. It will cost $50,000 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 $4,000,000 per year along with incremental costs of $1,200,000 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? 3. Cellular Access, Inc., a cellular telephone service provider reported net income of $244,100,000 for the most recent fiscal year. The firm had depreciation expenses of $93,700,000, capital expenditures of $203,600,000, and no interest expenses. Net working capital increased by $10,200,000. Calculate the free cash flow for Cellular Access for the most recent fiscal year 4. You purchased a machine for $1,080,000 three years ago and have been applying straight-line depreciation to zero for a seven-year life. Your tax rate is 38%. If you sell the machine today (after three years of depreciation) for $741,000, what is your incremental cash flow from selling the machine? Thank you for your help! I really appreciate it. 1. Daily Enterprises is purchasing a $10,000,000 machine. It will cost $50,000 to transport and install the machine. The machine has a depreciable life of five years and will have no salvage value. The machine will generate incremental revenues of $4,000,000 per year along with incremental costs of $1,200,000 per year. If Daily's marginal tax rate is 35%, what are the incremental earnings (net income) associated with the new machine? 2. Daily Enterprises is purchasing a $10,000,000 machine. It will cost $50,000 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 $4,000,000 per year along with incremental costs of $1,200,000 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? 3. Cellular Access, Inc., a cellular telephone service provider reported net income of $244,100,000 for the most recent fiscal year. The firm had depreciation expenses of $93,700,000, capital expenditures of $203,600,000, and no interest expenses. Net working capital increased by $10,200,000. Calculate the free cash flow for Cellular Access for the most recent fiscal year 4. You purchased a machine for $1,080,000 three years ago and have been applying straight-line depreciation to zero for a seven-year life. Your tax rate is 38%. If you sell the machine today (after three years of depreciation) for $741,000, what is your incremental cash flow from selling the machine
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