Using straight-line depreciation-will have no salvage value

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Daily enterprises is purchasing a 9.8 million machine. It will cost $47,000 to transport and install the machine. This 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 marginal tax rate is 35%. You are forecasting incremental free cash flows for Daily enterprises. The free cash flow for year 0 will be ?

Reference no: EM13913793

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