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Project Beta is a project which will last for 5 years and whichrequires an initial outlay of $4,000.This outlay will be depreciated usingstraight-line depreciation over
Project Beta is a project which will last for 5 years and whichrequires an initial outlay of $4,000.This outlay will be depreciated usingstraight-line depreciation over the life of theproject.It will generate incremental revenue of $2600 per year.The value of incremental, after-tax earnings is $888 per year.The project will require Net Working Capital equal to 10% of incremental revenue.
What is the value of incremental free cash flow in Year 6?
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