My specific question regarding this is:

Why do we nultiply EBIT by 0.75 ? I thought we use the tax rate (1-tax) aka 0.79 in this scenario. I've attached the work for the correct answer but dont ynderstand why they multiplied EBIT by 0.75.

nanswered Question 17 0/1 pts Taylor Inc., the company you work for, is considering a new project whose data are shown below. What is the project's Year 1 cash flow? Sales revenues, each year Depreciation Other operating costs Interest expense Tax rate $62,500 $8,000 $25,000 $8,000 21.0% $25,816 orrect Answer $31,305 $28,534 $29.960 $31.458