$10

milion and an incremental increase in operating costs of

$10

million during its first year. Year 1 incremental depreciation expense is

$5

million. The firm's interest expense will increase by

$2

million during year 1 . If the firm's marginal tax rate is

35%

what is the year 1 incremental after-tax cash flow for capital budgeting purposes?

$13 milion and an incremental increase in operating costs of $10 million during its first year. Year 1 incremental depreciation expense is $5 million. The firm's interest expense will increase by $2 million during year 1. If the firm's marginal tax rate is 35% what is the year 1 incremental after-tax cash flow for capital budgeting purposes