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Daily Enterprises is purchasing a$ 9.6million machine. It will cost $54,000 to transport and install the...

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Finance

Daily Enterprises is purchasing a$ 9.6million machine. It willcost $54,000 to transport and install the machine. The machine hasa depreciable life of five years using? straight-line depreciationand will have no salvage value. The machine will generateincremental revenues of$ 4.1 million per year along withincremental costs of $1.1 million per year.? Daily's marginal taxrate is 35%. You are forecasting incremental free cash flows forDaily Enterprises. What are the incremental free cash flowsassociated with the new? machine?

The free cash flow for year 0 will be ?$

?(Round to the nearest? dollar.)

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SolutionThe Free cash flow for year 0 is Purchase cost of the    See Answer
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Daily Enterprises is purchasing a$ 9.6million machine. It willcost $54,000 to transport and install the machine. The machine hasa depreciable life of five years using? straight-line depreciationand will have no salvage value. The machine will generateincremental revenues of$ 4.1 million per year along withincremental costs of $1.1 million per year.? Daily's marginal taxrate is 35%. You are forecasting incremental free cash flows forDaily Enterprises. What are the incremental free cash flowsassociated with the new? machine?The free cash flow for year 0 will be ?$?(Round to the nearest? dollar.)

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