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QueensFood will release a new range of candles that contains antioxidants. New equipment to manufacture the candy will cost $4 million, which will depreciation by
QueensFood will release a new range of candles that contains antioxidants. New equipment to manufacture the candy will cost $4 million, which will depreciation by straight-line depreciation over four years. In addition, there will be $10 million spent on promoting the new candy line. It is expected that the range of candles will bring in revenues of $8 million per year for four years with production and support cost of $3 million per year. If Queensfood' marginal tax rate is 35%, what are the incremental free cash flows of this project?
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