Question: Daily Enterprises is purchasing a machine that will generate incremental sales revenues of $4 million per year. Variable costs will be 20% of sales and

Daily Enterprises is purchasing a machine that will generate incremental sales revenues of $4 million per year. Variable costs will be 20% of sales and fixed costs will be $0.4 million per year. Depreciation will be $2 million dollars per year. If Daily's marginal tax rate is 35%, what is the annual cash flow associated with the new machine? $0.52 million $1.82 million O $2.52 million $2.80 million $3.12 million Page 61 Next Page Previous Page

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