The Hershey Company is planning on releasing a new line of gluten-free candy products. New equipment needed to manufacture the candy will cost $4.1 million and will be depreciated by straight-line depreciation over 6 years. In addition, there will be $7 million spent on marketing and promotion of the new candy line in the first year only. It is expected that the new candy line will generate incremental revenue of $6.2 million per year for 6 years with associated production and support costs of $1.6 million per year. If Hershey's marginal tax rate is 21%, what is the incremental free cash flow in YEAR 2 of this project

Answer rating: 100% (QA)

To calculate the incremental free cash flow in YEAR 2 of this project for The Hershey Company we nee... View the full answer