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What will be the cash flow in each of years

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Question - Daily Enterprises is purchasing a $12,000,000 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 $10,000,000 per year along with costs of $2,500,000 per year. If Daily's marginal tax rate is 35%, what will be the cash flow in each of years one to 5 (the cash flow will be the same each year)?

Reference no: EM133152667

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