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solve this on urgent base.. with solution Daily Enterprises is purchasing a $10.4 million machine. It will cost $53,000 to transport and install the machine.

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solve this on urgent base.. with solution

Daily Enterprises is purchasing a $10.4 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. Assume that CCA deductions are the same as depreciation expenses. The machine will generate incremental revenues of $4.2 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 associated with the new machine? The annual incremental earnings are $ (Round to the nearest dollar.)

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