You are conducting a capital budgeting analysis. The head of the business unit requesting capital for the project has provided you with the following forecasts for the third year of the project:

Incremental Gross Profit $($before depreciation$)$ $$7,491$

Depreciation expense $$948$

Fixed overhead allocation $($to cover the cost of maintaining corporate headquarters$)$ $$1,204$

Tax rate $32\%$