Daily Enterprises is purchasing a $ 10.2 million machine. It will cost $ 53, 000 to transport and install the machine. The machine has a depreciable life of five years and will have no salvage value. The machine will generate incremental revenues of $ 3.9 million per year along with incremental costs of $ 1.2 million per year. If Daily's marginal tax rate is 35% , what are the incremental earnings (net income) associated with the new machine?
The annual incremental earnings are $
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