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Daily Enterprises is purchasing a $10.5 million machine. It will cost $54000 to transport and install the machine. The machine has a depreciable life of
Daily Enterprises is purchasing a $10.5 million machine. It will cost $54000 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 of $3.9 million per year along with incremental costs of $1.5 million per year. If Daily's marginal tax rate 21%, what are the incremental earnings (net income) associate with the new machine?
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