Question: Solarity Inc. is considering a new widget machine. They have spent $ 1 0 0 , 0 0 0 researching the market for this new

Solarity Inc. is considering a new widget machine. They have spent $100,000 researching the market for this new product. The cost of the machine is $235,000 and it is in the 5-year MACRS category. The shipping and installation costs will total $58,000. The project is expected to have $500,000 per year in sales, and $350,000 in annual operating costs. The firm's tax rate is 21%.
What is expected EBIT in year 2 of this project?
Multiple Choice
$56,240
$64,398
$82,627
$91,061
 Solarity Inc. is considering a new widget machine. They have spent

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