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What the annual incremental earnings are

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Question: Daily Enterprises is purchasing a $9.6 million machine. It will cost $54,000 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 $1.2 million per year. If Daily's marginal tax rate is 35%. what are the incremental earnings (net income) associated with the new machine? The annual incremental earnings are $. (Round to the nearest dollar.)

Reference no: EM131965333

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