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A proposed new project has the following expected amounts for Year 5 of operations: Revenue: $100,000 Variable costs: 55% of revenue . Capital Cost Allowance:
A proposed new project has the following expected amounts for Year 5 of operations: Revenue: $100,000 Variable costs: 55% of revenue . Capital Cost Allowance: $14,000 Other fixed costs: $12,000 The firm pays 30% corporate taxes and expects that 15% of sales would be from cannibalization of the firm's existing products. What is the expected incremental EBIT for Year 5 of this project? Note: Your answer must accurate to the nearest dollar. Your
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