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Please help me answer these two problems Daily Enterprises is purchasing a $9.8 million machine. It will cost $53,000 to transport and install the machine.
Please help me answer these two problems
Daily Enterprises is purchasing a $9.8 million machine. It will cost $53,000 to transport and install the machine. The machine has a depreciable life of five years and will have no salvage value. If Daily uses straight-line depreciation, what are the depreciation expenses associated with this machine? The yearly depreciation expenses are $ (Round to the nearest dollar.) Daily Enterprises is purchasing a $10.3 million machine. It will cost $46,000 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 million per year along with incremental costs of $1.4 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 S (Round to the nearest dollar.)Step by Step Solution
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