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Builtrite is considering taking a project that will produce $12 million of revenue per year. Cash expenses will be $5 million, and depreciation expenses will
Builtrite 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. If the firm takes that project, then it will reduce the cash revenues of an existing project by $3 million. What is the RATFCF on the project, per year, if the firm is in the 40 percent marginal tax rate? O $2.8 million O $3.4 million O $4.6 million O $5.0 million
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