Daily Enterprises is purchasing a $10.31 million machine. It will cost $55,373.00 to transport and install the machine. The machine has a depreciable life of five years using the straight-line depreciation and will have no salvage value. The machine will generate incremental revenues of $4.37 million per year along with incremental costs of $1.23 million per year. Daily's marginal tax rate is 38.00%. The cost of capital for the firm is 15.00%. (answer in dollars..so convert millions to dollars) What is the yearly cashflow from the project? Submit Answer format: Currency: Round to: 2 decimal places.
Daily Enterprises is purchasing a $10.31 million machine. It will cost $55,373.00 to transport and install the machine. The machine has a depreciable life of five years using the straight-line depreciation and will have no salvage value. The machine will generate incremental revenues of $4.37 million per year along with incremental costs of $1.23 million per year. Daily's marginal tax rate is 38.00%. The cost of capital for the firm is 15.00%. (answer in dollars..so convert millions to dollars) What is the yearly cashflow from the project? Submit Answer format: Currency: Round to: 2 decimal places.
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
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Transcribed Image Text:Daily Enterprises is purchasing a $10.31 million machine. It will cost $55,373.00 to transport and install the machine. The
machine has a depreciable life of five years using the straight-line depreciation and will have no salvage value. The
machine will generate incremental revenues of $4.37 million per year along with incremental costs of $1.23 million per
year. Daily's marginal tax rate is 38.00%.
The cost of capital for the firm is 15.00%.
(answer in dollars..so convert millions to dollars)
What is the yearly cashflow from the project?
Submit
Answer format: Currency: Round to: 2 decimal places.
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