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What is the incremental after-tax cash flow (OCF) per year associated with the following project? initial investment in assets = $1,000,000 to be depreciated to

What is the incremental after-tax cash flow (OCF) per year associated with the following project?

  • initial investment in assets = $1,000,000 to be depreciated to $0 via straight-line method over 14-year project life
  • sales will increase by $1,750,000/year
  • expenses will increase by $1,540,000/year
  • firm's marginal tax rate is 34%

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