A firm is considering taking a project that will produce $12 million of revenue per year. Cash expenses will be $5 million, and depreciation expenses will be $1 million per year. The project would also reduce the cash revenues of an existing project by $2 million. What is the free cash flow on the project, per year, if the firm is in the 40 percent marginal tax rate? O $4.6 million O $2.4 million O $3.4 million O $5.0 million

A firm is considering taking a project that will produce $12 million of revenue per vear. Cash expenses will be $5million, and depreciation expenses wilt be $1 miltion per year. The project would also reduce the cash revenues of an existing project by 52 million. What is the free cash flow on the project, per year, if the firm is in the 40 percent marginal tax rate? $4.6 million $2.4 million $3.4 milion $5.0 million