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Daily Enterprises is purchasing a $8,000,000 machine. The machine will be 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 $3,500,000 per year. If Daily's marginal tax rate is 37%, what will be the cash flow in each of years 1 to 5 (the cash flow will be the same each year)? Enter your answer rounded to the nearest whole number. Enter your answer below. Number

Daily Enterprises is purchasing a $8,000,000 machine. The machine will be 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 $3,500,000 per year. If Daily's marginal tax rate is 37%, what will be the cash flow in each of years 1 to 5 (the cash flow will be the same each year)? Enter your answer rounded to the nearest whole number. Enter your answer below. Number

Essentials Of Investments
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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Daily Enterprises is purchasing a $8,000,000 machine. The machine will be 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 $3,500,000 per year. If Daily's marginal tax rate is 37%, what will be the cash flow in each of years 1 to 5 (the cash flow will be the same each year)? Enter your answer rounded to the nearest whole number. Enter your answer below. Number Section Attempt 1 of 1 Verify
Transcribed Image Text:Daily Enterprises is purchasing a $8,000,000 machine. The machine will be 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 $3,500,000 per year. If Daily's marginal tax rate is 37%, what will be the cash flow in each of years 1 to 5 (the cash flow will be the same each year)? Enter your answer rounded to the nearest whole number. Enter your answer below. Number Section Attempt 1 of 1 Verify
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