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Compute the cash flow of daily enterprises

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Daily Enterprises is purchasing a $9,000,000 machine. The machine will be depreciated using straight-line depreciation over its 10 year life and will have no salvage value. The machine will generate revenues of $5,500,000 per year along with fixed costs of $1,000,000 per year.

A) If Daily's marginal tax rate is 35%, what will be the cash flow in each of years 1 to 10 (the cash flow will be the same each year)?

Reference no: EM132483039

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