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Daily enterprises is purchasing a $10.4 million machine. it will cost $52,000 to transport and install the machine. the machine has a depreciable life of
Daily enterprises is purchasing a $10.4 million machine. it will cost $52,000 to transport and install the machine. the machine has a depreciable life of five years and will have no salvage value. the machine will generate incremental revenues of $4.1 million per year along with incremental costs of $1.2 million per year. If Daily's marginal tax rate is 35%. what are the incremental earnings (net income) associated with the new machine?
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