What the incremental earnings associated with new? machine

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Question - Daily Enterprises is purchasing a $10.2 million machine. It will cost $52,000 to transport and install the machine. The machine has a depreciable life of five years and will have no salvage value. Assume that CCA deductions are the same as depreciation expenses. The machine will generate incremental revenues of $4.2 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 associated with the new? machine?

Reference no: EM133066226

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