Question 14 A firm is considering taking a project that will produce $14.5 million of revenue...
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Question 14 A firm is considering taking a project that will produce $14.5 million of revenue per year. Cash expenses will be $7.5 million, and depreciation expenses will be $2 million per year. If the firm takes that project, then it will reduce the cash revenues of an existing project by $1.5 million. What is the free cash flow on the project, per year, if the firm is in the 40 percent marginal tax rate? $3.8 million O 14.1 million Ⓒ$4.9 million $4.7 million 1 pts • Previous Next Question 14 A firm is considering taking a project that will produce $14.5 million of revenue per year. Cash expenses will be $7.5 million, and depreciation expenses will be $2 million per year. If the firm takes that project, then it will reduce the cash revenues of an existing project by $1.5 million. What is the free cash flow on the project, per year, if the firm is in the 40 percent marginal tax rate? $3.8 million O 14.1 million Ⓒ$4.9 million $4.7 million 1 pts • Previous Next
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Related Book For
Principles of Cost Accounting
ISBN: 978-1305087408
17th edition
Authors: Edward J. Vanderbeck, Maria Mitchell
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