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You are trying to decide whether to accept or reject a one-year project. The project is estimated to generate $5,000 in incremental gross profit, which
You are trying to decide whether to accept or reject a one-year project. The project is estimated to generate $5,000 in incremental gross profit, which includes $200 in depreciation. Incremental SG& A expense is $400. At a 35% tax rate, the after-tax incremental cash flow is:
$2,990 $3,190 $3,250 $3,510
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