Question: Amsted, Inc. is considering a project that will increase revenues by $3.5 million, cash operating expenses by $800,000, and depreciation and amortization by $200,000 during

Amsted, Inc. is considering a project that will increase revenues by $3.5 million, cash operating expenses by $800,000, and depreciation and amortization by $200,000 during 2025. For this project, the firm will purchase $900,000 of equipment during the year while decreasing its inventory by $100,000 (with no corresponding decrease in current liabilities). The marginal tax rate for Amsted is 25 percent. What is this project incremental after-tax free cash flow in 2025?

can you please break down the whole equation AND SHOW how to get the incremental after tax free cash flow?

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