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Use formulas not excel Marked ou P Flag question Cathfoods will release a new range of candies which contain antioxidants. New equipment to manufacture the

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Marked ou P Flag question Cathfoods will release a new range of candies which contain antioxidants. New equipment to manufacture the candy will cost $2.5 million, which will be depreciated by straight-line depreciation over four years. In addition, there will be $5 million spent on promoting the new candy line in year 1. It is expected that the range of candies will bring in revenues of $4 million per year for four years with production and support costs of $1 million per year. If CathFoods' marginal tax rate is 35%, what are the incremental free cash flows in the second year of this project? CBAFIN 425 Capital Budgeting Dr, Sarah Khalid 1 " BI ili TII X2 9 Summer 2020 Sarah Khalal

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