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Daily Enterprises is purchasing a $10.3 million machine. It will cost $47,000 to transport and install the machine. The machine has a depreciable life of

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Daily Enterprises is purchasing a $10.3 million machine. It will cost $47,000 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 $3.9 million per year along with incremental costs of $1.1 million per year. If Daily's marginal tax rate is 35%, what are the incremental earnings associated with the new machine

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