Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. finance
  3. daily enterprises is purchasing a $9.5 million mac

Daily Enterprises is purchasing a $9.5 million machine. It will cost $55,000 to transport and...

80.2K

Verified Solution

Question

Finance

image

Daily Enterprises is purchasing a $9.5 million machine. It will cost $55,000 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 $1.4 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 $ - 9555000 (Round to the nearest dollar.) The free cash flow for years 1-5 will be 1032850. (Round to the nearest dollar.)

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Finance
1.2K views

which of the following statements is correct according to the Tax Court? A) a general partner is...

Physics
1.2K views

How wind force affect projectile velocity? what is the equation of projectile motion velocity x &...

Physics
1.2K views

06 A uniform but increasing with time magnetic field exists in a cylindrical region The...

Geometry
1.2K views

22 sin 38 cos 0

Algebra
1.2K views

Solve the first order homogeneous differential equationdy/dx = x-2xy/y + x

Algebra
1.2K views

Find the seventh term of the arithmetic sequence whose first term is 14 and whose...

Algebra
1.2K views

The point 16 12 is on the graph of y f x Find the corresponding...

Accounting
1.2K views

Due to erratic sales of its sole product-a high-capacity battery for...

Accounting
1.2K views

Average Accounts Receivable, Accounts Receivable Turnover Ratio, Accounts Receivable Turnover in Days Montalcino Company had...

Accounting
1.2K views

The manager at the Yarn Shoppe needs to determine the target price per wool yarn...

Accounting
1.2K views

I do not want a handwritten answer. The executor of Gina Purcell's estate has recorded...

Accounting
1.2K views

Currington Company wants to use absorption cost-plus pricing to set the selling price on a...