Question: Daily Enterprises is purchasing a $10.1 milion machine. It will cost $52,000 to transport and install the machine. The machine has a depreciate life of
Daily Enterprises is purchasing a $10.1 milion machine. It will cost $52,000 to transport and install the machine. The machine has a depreciate life of five years and will have no salvage value. Assume that CCA deductions are the same as depreciation expenses. The machine will generate incremental revence of 543 mision per year along with incremental costs of $1.3 million per year. If Daily's marginal tax rate is 35%, what are the incremental comings associated with the new machine? The annual incremental earrings are $ (Round to the nearest dollar)
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
