Current Attempt in Progress

Amsted, Inc. is considering a project that will increase revenues by $$2\mathrm{.}5$ million, cash operating expenses by $$700,000,$ and depreciation and amortization by $$300,000$ during $2021.$ For this project, the firm will purchase $$800,000$ of equipment during the year while decreasing its inventory by $$200,000($with no corresponding decrease in current liabilities$).$ The marginal tax rate for Amsted is $35$ percent. What is this project's incremental after$-$tax free cash flow for $2021?$

$$675,000$

$$475,000$

$$275,000$

$$975,000$

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