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Daily Enterprises is purchasing a $10.3 million machine. It will cost $52,000 to transport and...

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Finance

Daily Enterprises is purchasing a $10.3 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. The machine will generate incremental revenues of $3.8

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?

The annual incremental earnings are

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