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A firm expects a project to have the following incremental Income Statement (all values in millions of dollars): Fiscal year 2015 2016 2017 Revenues $55.8

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A firm expects a project to have the following incremental Income Statement (all values in millions of dollars): Fiscal year 2015 2016 2017 Revenues $55.8 $66.0 $38.1 Costs -33.8 -40.0 -23.1 Depreciation -1.0 -1.0 -1.0 EBIT 21.0 25.0 14.0 The project's incremental pro-forma balance sheet is expected to contain the following working capital items at the end of those fiscal years (all values in millions of dollars): Assets Liabilities Fiscal year 2015 Inventories $5.0 Accounts payable $3.8 Accounts receivable 0.9 Fiscal year 2016 Inventories 6.0 Accounts payable 4.5 Accounts receivable 1.1 Fiscal year 2017 Inventories 3.4 Accounts payable 2.5 Accounts receivable 0.6 In 2016, expected incremental capital expenditures total $2.7 million and incremental after tax salvage is expected to be $3.3 million. The tax rate for the project is 25%. What are the expected incremental cash flows from the project in 2016? O a. $19.85 million b. $23.85 million O c. $16.75 million O d. $14.85 million O e. $27.10 million

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