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CathFoods will release a new range of candies which contain antioxidants. New equipment to manufacture the candy will cost $5 million, which will be depreciated

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CathFoods will release a new range of candies which contain antioxidants. New equipment to manufacture the candy will cost $5 million, which will be depreciated by straight-line depreciation over six years. In addition, there will be $5 million spent on promoting the new candy line. It is expected that the range of candies will bring in revenues of $7 million per year for six years with production and support costs of $1.5 million per year. If CathFood's marginal tax rate is 35%, what are the incremental free cash flows in the second year of this project? O A. $3.867 million OB. $4.667 million O c. $1.633 million OD. $2.450 million

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