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Eindalo Entorpeises is deciding whother to expand its production faclites. Athough longuterm cash fows are diffoul to estimate, manapiment has projected the follosing cash flows

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Eindalo Entorpeises is deciding whother to expand its production faclites. Athough longuterm cash fows are diffoul to estimate, manapiment has projected the follosing cash flows for the first two years (in milions of dollars): a. What are the incremental narmings for this project for years 1 and 2?. Note: Assume any incromentar cost of poods mold is inctuded as part ol opornding expenses? b. What are the tree cash flows for this project foe years 1 and 2 ? 3. What are the incremental earnings tor this propect for years 1 and 2 ? (Note: Assume aty incremontal eost of poods sold is inoluded as pant af aperating appensea) Data table (Cick on the folowing ioon D, in order to copy as contents into a spresdsteet) Daily Enterprises is purchasing a $10.3 million machine. It will cost $50,000 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 $4.2 million per year along with incremental costs of $1.3 million per year. If Daily's marginal tax rate is 21%, what are the incremental earnings (net income) associated with the new machine? The annual incremental earnings are $ (Round to the nearest dollar.) You are upgrading to better production equipment for your firm's only product. The new equipment will allow you to make more of your product in the same amount of time. Thus, you forecast that total sales will increase next year by 23% over the current amount of 93,000 units. If your sales price is $21 per unit, what are the incremental revenues next year from the upgrade? The incremental revenues are $ (Round to the nearest dollar.)

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