P 9-2 (similar to)

Question Help

Daily Enterprises is purchasing a

$9.8

million machine. It will cost

$55,000

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

$3.9

million per year along with incremental costs of

$1.5

million per year. If Daily's marginal tax rate is

35%,

what are the incremental earnings (net income) associated with the new machine?The annual incremental earnings are

$nothing.

(Round to the nearest dollar.)