Question: General Electric approved a 8-vear project that requires an initial investment of $72 million for the equipment and working capital of 58 million. The project

 General Electric approved a 8-vear project that requires an initial investment

General Electric approved a 8-vear project that requires an initial investment of $72 million for the equipment and working capital of 58 million. The project will generate Soles of $30 million Operating Expenses of $4 million and Depreciation and Amortization charges of $9 million per year during the life of the project. The firm uses straight-line depreciation. At the end of the project. General Electric sets the book value to zero and the market value of the equipment to $3 million. The marginal tax rate for General Electric is 20% What is the Free Cash Flow of the project in year7? O $24.41 million O $21.24 million O $22.60 million O $13.60 million $20.34 million

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