What are the incremental free cash ?ows

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Daily Enterprises is purchasing a $10.0 million machine. It will cost $50,000 to transport and install the machine. The machine has a depreciable life of ?ve years using straight-line depreciation and will have no salvage value. The machine will generate incremental revenues of $4.0 million per year along with incremental costs of$12 million per year. Daily's marginal tax rate is 21%. You are forecasting incremental free cash ?ows for Daily Enterprises. What are the incremental free cash ?ows associated with the new machine?

Reference no: EM133060637

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