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A beauty product company is developing a new fragrance named Happy Forever. There is a probability of 0 . 4 9 that consumers will love

A beauty product company is developing a new fragrance named Happy Forever. There is a probability of
0
.
4
9
that consumers will love Happy Forever, and in this case, annual sales will be
1
.
0
9
million bottles; a probability of
0
.
3
7
that consumers will find the smell acceptable and annual sales will be
1
70
,
0
0
0
bottles; and a probability of
0
.
1
4
that consumers will find the smell unpleasant and annual sales will be only
51
,
0
0
0
bottles. The selling price is $
3
7
,
and the variable cost is $
1
1
per bottle. Fixed production costs will be $
1
:
10
million per year, and depreciation will be $
1
.
1
9 million. Assume that the marginal tax rate is
2
7
percent. What are the expected annual incremental after
-
tax free cash flows from the new fragrance?
(
Round answer to
0
decimal places, e
.
g
.
5
,
2
7
5
.
)

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