Question: 7. A firm is considering taking a project that will produce $12 million of revenue per year. Cash expenses will be $5 million, and depreciation

7. A firm is considering taking a project that will produce $12 million of revenue per year. Cash expenses will be $5 million, and depreciation expenses will be $1 million per year. If the firm takes that project, then it will reduce the cash revenues of an existing project by $2 million. What is the free cash flow on the project, per year, if the firm is in the 40 percent marginal tax rate? (Points : 1) $2.4 million $3.4 million $4.6 million $5.0 million

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