P 9-2 (similar to) A Question Help O Daily Enterprises is purchasing a $10.3 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 $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.)
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