Question: 12) A rm is considering a new project that will generate cash revenue of $1,100,00 and cash expenses of $750,000 per year for fit-e years.


12) A rm is considering a new project that will generate cash revenue of $1,100,00 and cash expenses of $750,000 per year for fit-"e years. The equipment necessary for the project will cost $225,000 and will be depreciated straight line over four years. Mat is the expected free cash ow in the second year of the project if the rm's marginal tax rate is 35%? A. $190,933 B. $222,459 (3. $247,133 D. $296,626
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