What will be the cash flow in each of years

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Question - Daily Enterprises is purchasing a $14,000,000 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 $7,000,000 per year along with costs of $4,000,000 per year. If Daily's marginal tax rate is 31%, what will be the cash flow in each of years one to 5? Note that the cash flow will be the same each year.

Reference no: EM132745837

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