revenues, but it is expected to save the firm $40,000 per year in before tax operating costs, mainly labor. Lowell's marginal tax rate (federal plus state) is 25%. If the project's cost of capital is 12%, What is the TOTAL FREE CASH FLOW FOR YEAR 3 ? Free cash flow = Total Initial Investment + Total annual project CF + Total Salvage Value $86,050$75,600$90,550$64,986 QUESTION 15 $20,300 $18,326 $18,121 $14,918