Daily Enterprises purchases a $10 million machine to be depreciated on a straight line basis over 5 years. The machine generates incremental revenues of $4 million per year, along with incremental costs of $1 million per year. If the marginal tax rate is 25%, compute the incremental free cash flow (at the end of year 1) generated from the new machine. $2.75 million $1.50 million $2.40 million $2.60 million SIROM Scientific Solutions has equity with a market value of $10 million and $5 million of bank debt. The bank debt costs 6% per year. The estimated equity beta is 2. If the market risk premium is 8% and the risk-free rate is 3%, compute the WACC if the firm's tax rate is 21%. 12.66% 14.25% 12.93% 13.83% Books Inc. purchases a new machine for $100.000 that is to be depreciated on a straight line basis over 10 years. After 5 years, Books Inc. sells the machine for $80.000. If the marginal tax rate is 40%, what is the cash inflow from this sale? $70.000 $68.000 $72.500 $71,000