What are the incremental earnings associated with machine

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Reference no: EM131511580

Daily Enterprises is purchasing a $10.2 million machine. It will cost $49,000 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 $3.9 million per year along with incremental costs of $1.3 million per year. If Daily's marginal tax rate is 35%?, what are the incremental earnings (net income) associated with the new machine?

Reference no: EM131511580

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