Question: ou are given that a prospective capital project will generate operating revenues of $87 million per year. An analyst provides you the following information about

ou are given that a prospective capital project will generate operating revenues of $87 million per year. An analyst provides you the following information about the cost of the project: total operating costs will total $31 million per year, the feasibility study for the project totaled $14 and has already been paid, and the corporate income tax rate is 40%. Assuming zero CCA depreciation, zero net working capital requirements, and zero capital expenditure requirements, what is the annual free cash flow generated by the project (in $millions)?

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