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The Hershey Company is planning on releasing a new line of gluten-free candy products. New equipment needed to manufacture the candy will cost $3.9 million

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The Hershey Company is planning on releasing a new line of gluten-free candy products. New equipment needed to manufacture the candy will cost $3.9 million and will be depreciated by straight-line depreciation over 6 years. In addition, there will be $7 million spent on marketing and promotion of the new candy line in the first year only. It is expected that the new candy line will generate incremental revenue of $5.9 million per year for 6 years with associated production and support costs of $1.6 million per year. 1 Hershey's marginal tax rate is 21%, what is the incremental free cash flow in YEAR 2 of this project? A $3.534 million OB. $2.884 million C. $ - 1.997 million OD. $4.216 million

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