Daily Enterprises is purchasing a $ 9.7 million machine. It will cost $ 54000 to...
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Daily Enterprises is purchasing a $ 9.7 million machine. It will cost $ 54000 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 $ 4.3 million per year along with incremental costs of $ 1.5 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?
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