Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Please answer them correctly fast Daily Enterprises is purchasing a $9.5 million machine. It will cost $19,000 to transport and install the machine. The machine

Please answer them correctly fast

image text in transcribed

image text in transcribed

Daily Enterprises is purchasing a $9.5 million machine. It will cost $19,000 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 $3,8 million per year along with incremental costs of $12 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 5 (Round to the nearest dollar) You purchased a machine for $1.15 milion three years ago and have been applying straight line depreciation to zero for a seven-year life. Your lax rate is 35%. If you sell the machine today (after three years of depreciation) for $753,000, what is your incremental cash flow from selling the machine? Your total incremental cash flow will be $ (Round to the nearest cent)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Financial Management For Nurse Managers And Executives

Authors: Cheryl Jones, Steven A. Finkler, Christine T. Kovner, Jason Mose

5th Edition

0323415164, 9780323415163

More Books

Students also viewed these Finance questions

Question

What is a verb?

Answered: 1 week ago

Question

Formulate strategies and recommendations for action on HRM issues.

Answered: 1 week ago