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

builtrite 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 RATFCF on the project, per year, if the firm is in the 34 percent marginal tax rate?

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