Question: How was EBIT caculated in this problem below? 34. Your company is considering a new project whose data are shown below. What is the Depreciation

How was EBIT caculated in this problem below? How was EBIT caculated in this problem below? 34. Your company is

34. Your company is considering a new project whose data are shown below. What is the Depreciation cach year related to new project? Sales revenue, each year Other operating costs Project's Year 1 cash flow Tax rate $200,000 $150,000 $36,000 35% $200,000 Sales - Depreciation - Other operating costs EBIT EBIT(1-T) + Depreciation FCF - S150,000 $50,000 - X $32,500 -0.65% $32,500 -0.65X + X - 36,000 X-S10,000

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