Your firm just purchased a new machine. The machine cost $2,200,000. The machine will be...
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Accounting
Your firm just purchased a new machine. The machine cost $2,200,000. The machine will be used on a new project. The project will last 4 years. The company will depreciate the cost of the machine on a straight-line basis. CCA expense will be equal to depreciation each year. The project will generate incremental revenues of $4,650,000 each year. The incremental annual operating costs are $900,000. The tax rate is 32%. What is the unlevered net income for year 1? Your answer should be accurate to two decimal places.
ANSWER: $2,176,000.00
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