Question
A company is considering a new project with the following Year 1 information: Incremental revenues $16,037 Depreciation for tax purposes $1,500 Other incremental operating costs
A company is considering a new project with the following Year 1 information:
| Incremental revenues | $16,037 |
| Depreciation for tax purposes | $1,500 |
| Other incremental operating costs | $8,271 |
| Marginal tax rate | 21% |
What is the projects free cash flow in the first year of operations?
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Managerial Economics A Problem Solving Approach
Authors: Luke M. Froeb, Brian T. McCann, Mikhael Shor, Michael R. War
3rd edition
978-1133951483
