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Please answer both questions and I will leave a like A project requires the purchase (in year 0 ) of a machine for $238,000. The
Please answer both questions and I will leave a like
A project requires the purchase (in year 0 ) of a machine for $238,000. The firm will depreciate the machine to zero salvage value over its life of 6 years. The project will also generate incremental revenue and expenses of $371,000 and $133,000 each of years 1 through 6. The firm's marginal tax rate is 22%. What is the project's incremental EBIT in year 1? Round your answer to the nearest dollar. A project requires the purchase (in year 0 ) of a machine for $363,000. The firm will depreciate the machine to zero salvage value over its life of 9 years. The project will also generate incremental revenue and expenses of $308,000 and $197,000 each of years 1 through 9. The firm's marginal tax rate is 24%. What is the project's incremental after-tax earnings in year 1? Round your answer to the nearest dollarStep by Step Solution
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