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A stationery company plans to launch a new type of indelible ink pen. The machinery used for producing the new pen will cost the
A stationery company plans to launch a new type of indelible ink pen. The machinery used for producing the new pen will cost the company $3.5 million to build. The estimated revenue of the new pen is $6 million per year and production cost is $1.5 million per year. If the company has a marginal corporate tax of 36%, what is the after-tax incremental earnings per year generated by the new pen?
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Elementary Statistics
Authors: Mario F. Triola
3rd Canadian Edition
032122597X, 978-0321225979
