A firm is evaluating a new capital project. The firm spent $45,000 on a market study and $50,000 on consulting three months ago. If the firm approves the project, over its 12-year life. The expected sales increase from this new project is $500,000 a year, and the expected incremental expenses are $200,000 a year. In order to start this new project, the company will invest S100,000 in working capital. The marginal tax rate is 40%. What is the annual net cash flow per year from this project? $209,000 $211,500 $212,333 $206,667 Prev Next