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CathFoods will release a new range of candies which contain anti - oxidants. New equipment to manufacture the candy will cost $ 4 million, which
CathFoods will release a new range of candies which contain antioxidants. New equipment to manufacture the candy will cost $ million, which will be depreciated by straightline depreciation over five years. In addition, there will be $ million spent on promoting the new candy line. It is expected that the range of candies will bring in revenues of $ million per year for five years with production and support costs of $ million per year. If CathFood's marginal tax rate is what are the incremental earnings in the second year of this project?
A $ million
B $ million
C $ million
D $ million
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