Depreciated to zero using straight-line depreciation

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Reference no: EM132009388

A company has new equipment costs of $2 million, which will be depreciated to zero using straight-line depreciation over 9 years. The company expects to bring in revenues of $5 million per year for 9 years with production costs of $1.4 million per year. If the company's tax rate is 21%, what are the incremental earnings (not cash flows) of this project in years 1-9? Enter your answer in dollars and round to the nearest dollar.

Reference no: EM132009388

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