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Daily Enterprises is purchasing a $ 9.8$9.8 million machine. It will cost $ 51 comma 000$51,000 to transport and install the machine. The machine has
Daily Enterprises is purchasing a
$ 9.8$9.8
million machine. It will cost
$ 51 comma 000$51,000
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$4.1
million per year along with incremental costs of
$ 1.4$1.4
million per year. If Daily's marginal tax rate is
35 %35%,
what are the incremental earnings (net income) associated with the new machine?
The annual incremental earnings are
$nothing .
(Round to the nearest dollar.)
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