Question: FireRock Wheel Corp. is evaluating a project in which there is a 40 percent probability of revenues totaling $3 million and a 60 percent probability

FireRock Wheel Corp. is evaluating a project in which there is a 40 percent probability of revenues totaling $3 million and a 60 percent probability of revenues totaling $ 1 million per year. If cash expenses will be $1 million while depreciation expens will be $200,000 then what is the expected free cash flow from taking the project if the marginal tax rate for the firm is 30 percent

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