Incremental free cash flows

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Planet Enterprises is purchasing a $10.3 million machine. It will cost $47 000 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 $4.4 million per year along with incremental costs of $1.1 million per year.? Planet's marginal tax rate is 30%.

You are forecasting incremental free cash flows for Daily Enterprises. What are the incremental free cash flows associated with the new? machine?

Reference no: EM133072314

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