Secure I https://www.mathol.com/Student/PlayerTest.aspx?testid-170425 MGMT 273 F
ID: 2790263 • Letter: S
Question
Secure I https://www.mathol.com/Student/PlayerTest.aspx?testid-170425 MGMT 273 Fall Quiz: Chapter 9 Quiz This Question: 1 pt Submit Quiz 2 of 13 (4 complete) This Quiz: 13 pts possible Daily Enterprises is purchasing a $9 8 million machine. It will cost $52,000 to transport and install the machine. The mach have no salvage value. The machine will generate incremental revenues of S tax rate is 35%, what are the incremental e The machine has a depreciable life f five years and wil along with incremental costs of $1.1 million per year.If Daily's marginal 3 9 million per year The annual incremental earnings are S (Round to the nearest dollar)Explanation / Answer
Depreciation = ($9.8 million+52,000)/5 = 1,970,400 per year for the next 5 years.
Incremental net income = Incremental revenues - incremental costs - depreciation.
(in $) Incremental revenues 3,900,000.00 less: incremenatl costs (1,100,000.00) less: Depreciation (1,970,400.00) Incremental income before tax 829,600.00 less: 35% tax on 829,600 (290,360.00) Incremental net income 539,240.00