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Mark-Dabros Chemicals is planning to release a new brand of insecticide, Bug- Away, that will kill many insect pests but not harm useful pollinators. Buying
Mark-Dabros Chemicals is planning to release a new brand of insecticide, Bug- Away, that will kill many insect pests but not harm useful pollinators. Buying new equipment to manufacture the product will cost $9 million. The equipment is expected to have a lifetime of nine years and will be depreciated by the straight- line method over its lifetime. The firm expects that they should be able to sell 1,500,000 gallons per year at a price of $50 per gallon. It will take $30 per gallon to manufacture and support the product. If Vernon-Nelson's marginal tax rate is 25%, what are the incremental earnings after tax in year 3 of this project? Mark-Dabros Chemicals is planning to release a new brand of insecticide, Bug- Away, that will kill many insect pests but not harm useful pollinators. Buying new equipment to manufacture the product will cost $9 million. The equipment is expected to have a lifetime of nine years and will be depreciated by the straight- line method over its lifetime. The firm expects that they should be able to sell 1,500,000 gallons per year at a price of $50 per gallon. It will take $30 per gallon to manufacture and support the product. If Vernon-Nelson's marginal tax rate is 25%, what are the incremental earnings after tax in year 3 of this project
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