What are the incremental earnings associated with machine

Assignment Help Finance Basics
Reference no: EM131965318

Question: Daily Enterprises is purchasing a $9.6 million machine. It will cost $55,000 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 $4.3 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: EM131965318

Questions Cloud

Ever-increasing speed : Technology is moving at an ever-increasing speed, and this means that new products enter and leave the market faster than ever. What are some products
Deciding to renew a lease : What are some of the considerations a tenant must consider when deciding to renew a lease?
Mortgage interest rate : Mortgage lenders base the mortgage interest rate they offer you on your credit rating. This makes it financially critical to maintain a credit score of 700.
Compare the three common network model standards : Compare the three common network model standards (OSI, the DoD, and the TCP/IP). Which media type should you use to wire the network and why?
What are the incremental earnings associated with machine : Daily Enterprises is purchasing a $9.6 million machine. It will cost $55,000 to transport and install the machine.
Analysis of current social forces : Based on your analysis of current social forces, what new laws or regulations do you think will be passed or issued in the next few years?
Describe ethical principles in business : Define CSR and give an example. Identify Stakeholders and Define their individual roles or relationships.
Identify one government policy or organisation applicable : Identify one government policy or organisation applicable to the Older person and discuss how it informs the support and protectionof carers in Australia.
Difference between the project requirements : What is the difference between the project requirements (the specifications that must be met for the project/product to meet.

Reviews

Write a Review

Finance Basics Questions & Answers

  What is the amount of the last dividend paid

Roy's Welding Supplies common stock sells for $38 a share and pays an annual dividend that increases by 3 percent annually. The market rate of return on this stock is 8.20 percent. What is the amount of the last dividend paid?

  The trial balance for k and j nursery inc listed the

the trial balance for k and j nursery inc. listed the following account balances at december 31 2013 the end of its

  What is the net price for a chair at retailer

Ashley is comparison shopping for chairs for her restaurant. She finds the same chairs at two retailers. One offers them for a list price of $120 each.

  Million exemption from the death tax

The client's net worth is $7,500,000. It consists of stocks and bonds worth $6,000,000 and a $1,500,000 home. She is single and you are recommending that she buy life insurance to cover the estimated estate taxes due at her death.

  Identify six sources of short term financing available

Identify six sources of short term financing available in financing new business and give detailed explanation as to the process involved

  Calculate the duration of a one-year fixed payments loan

calculate the duration of a one-year fixed payments loan with monthly payments of 150 and yield to maturity of 12. use

  Jack is considering adding toys to his general store

Jack is considering adding toys to his general store

  What is up-and-down weighted average cost of capital

The Up-and-Down company has a cost of equity of 12.2%, a cost of debt of 8.6%, and a marginal tax rate of 40%. The current market value of its debt.

  How sensitive is ocf to changes in quantity sold

Sensitivity Analysis. Consider a three-year project with the following information: initial fixed asset investment = $645,000; straight-line depreciation.

  What is the present value of the interest tax shield

Bay Transport Systems (BTS) currently has $ 45$45 million in debt outstanding. In addition to 9.0 %9.0% interest, it plans to repay 5% of the remaining balance.

  What have you mastered about strategy in business ?

What have you mastered about Strategy in business ?

  What are the dangers and disadvantages of using a financial

Corporate financial plans are often used as a basis for judging subsequent performance. What can be learned from such comparisons? What problems might arise and how might you cope with sucj problems?

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd