Question: Project Beta is a 4-year project which requires an initial outlay of $4,000. This outlay will be depreciated using straight-line depreciation over the life of

Project Beta is a 4-year project which requires an initial outlay of $4,000. This outlay will be depreciated using straight-line depreciation over the life of the project. It will generate incremental revenue of $4000 per year and incremental costs (excluding depreciation) of $500. The tax rate is 20%. What is the project's annual incremental EBIT? a.$1500 b.$2500 c.$4500 d.$3500

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