Question: A firm is considering a new project that will generate cash revenue of $1,000,000 and cash expenses of $700,000 per year for five years. The

A firm is considering a new project that will generate cash revenue of $1,000,000 and cash expenses of $700,000 per year for five years. The equipement necessary for the project will cost $200,000 and will fall under asset class 43 with a CCA rate of 30%. What is the expected free cash flow in the second year of the project if the firm's marginal tax rate is 35%?

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