What are incremental earnings

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Daily Enterprises is purchasing a $9.9 million machine. It will cost $51,000 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 $ 1.4 million per year. If Daily's marginal tax rate is 35 %, what are the incremental earnings? (net income) associated with the new machine?

a. The annual incremental earnings are $______. (Round to the nearest dollar.)

Reference no: EM132028696

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