Determining the cash flow of daily enterprises

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Daily Enterprises is purchasing a $15,000,000 machine. The machine will depreciated using straight-line depreciation over its 5 year life and will have no salvage value. The machine will generate revenues of $5,000,000 per year along with costs of $3,500,000 per year.

If Daily's marginal tax rate is 29%, what will be the cash flow in each of years one to 5 (the cash flow will be the same each year)?

Enter your answer below rounded to the nearest whole number.

 

 

Reference no: EM132700958

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