Project Beta is a 6-year project which requires an initial outlay of $6,000. This outlay will be depreciated usingstraight-line depreciation over the life of theproject. It will generate 

 

Project Beta is a 6-year project which requires an initial outlay of $6,000.  This outlay will be depreciated using straight-line depreciation over the life of the project.  It will generate incremental revenue of $3000 per year and incremental costs (excluding depreciation) of $300.  The tax rate is 30%.

What is the project's annual tax payable?

 

a.$1190

 

 

b.$510

 

 

c.$210

 

 

d.$490