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
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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