Daily Enterprises is purchasing a $9.7 million machine. It will cost $45,000 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 $4.3 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 (net income) associated with the new machine?
Incremental earnings or net income associated with the new machine=(4.3-1.4-(9.7+45000/10^6)/5)*(1-35%)=0.61815 million
Daily Enterprises is purchasing a $9.7 million machine. It will cost $45,000 to transport and install...
Daily Enterprises is purchasing a $ 9.7$9.7 million machine. It will cost $ 55 comma 000$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$3.9 million per year along with incremental costs of $ 1.4$1.4 million per year. If Daily's marginal tax rate is 35 %35%, what are the incremental earnings (net income) associated with the new machine? Homework:...
Daily Enterprises is purchasing a $10.2 million machine. It will cost $45,000 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 $ . (Round...
Daily Enterprises is purchasing a $9.8 million machine. It will cost $45,000 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 $4.2 million per year along with incremental costs of $1.5 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...
Daily Enterprises is purchasing a $10.1 million machine. It will cost $52000 to transport and install the machine. The machine has a depreciable life of five years using straight-line depreciation and will have no salvage value. The machine will generate incremental revenues of $ 4.3 million per year along with incremental costs of $ 1.1 million per year. Daily's marginal tax rate is 35 %. You are forecasting incremental free cash flows for Daily Enterprises. What are the incremental free...
Daily Enterprises is purchasing a $9.6 million machine. It will cost $45,000 to transport and install the machine. The machine has a depreciable life of five years using straight-line depreciation and will have no salvage value. The machine will generate incremental revenues of $3.9 million per year along with incremental costs of $1.1 million per year. Daily's marginal tax rate is 35%. You are forecasting incremental free cash flows for Daily Enterprises. What are the incremental free cash flows associated...
Daily Enterprises is purchasing a $9.9 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 $3.9 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 (net income) associated with the new machine? The annual incremental earnings are. (Round to the...
Daily Enterprises is purchasing a $9.8 million machine. It will cost $46,000 to transport and install the machine. The machine has a depreciable life of five years and wil have no salvage value. The machine will generate incremental revenues of $4.3 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 camnings (net income) associated with the new machine? De The annual incremental earnings are $ (Round...
Daily Enterprises is purchasing a $ 9.7$9.7 million machine. It will cost $ 55 comma 000$55,000 to transport and install the machine. The machine has a depreciable life of five years using straight-line depreciation and will have no salvage value. The machine will generate incremental revenues of $ 4.1$4.1 million per year along with incremental costs of $ 1.2$1.2 million per year. Daily's marginal tax rate is 35 %35%. You are forecasting incremental free cash flows for Daily Enterprises. What...
Daily Enterprises is purchasing a $9.8 million machine. It will cost $53,000 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 $4.2 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 $ (Round to...
Daily Enterprises is purchasing a $9.9 million machine. It will cost $52,000 to transport and install the machine. The machine has a depreciable life of five years and will have no salvage value. The machine will generate incremental revenues of$ 3.9 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 newmachine? The annual incremental earnings are $___. (Round to the...