Question: Project Beta is a 5-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 5-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 $2600 per year and incremental costs (excluding depreciation) of $700. The tax rate is 40%. What is the annual depreciation amount?

Select one: a. $1600 b. $800 c. $600 d. $1700

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