Question: Daily Enterprises is purchasing a 9.6 million machine. It will cost 47000 to transport and install the machine. The machine has a depreciable life of
Daily Enterprises is purchasing a 9.6 million machine. It will cost 47000 to transport and install the machine. The machine has a depreciable 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 revenues of 4.3 million per year along with incremental costs of 1.3 million per year. If Daily's marginal tax rate is 35%, what are the incremental earnings associated with the new machine? Part 1 The annual incremental earnings are
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