Question: Project Beta is a 6-year project which requires an initial outlay of $2,000. This outlay will be depreciated using straight-line depreciation over the life of

Project Beta is a 6-year project which requires an initial outlay of $2,000. This outlay will be depreciated using straight-line depreciation over the life of the project. It will generate incremental revenue of $1000 per year and incremental costs (excluding depreciation) of $100. The tax rate is 25%. What is the project's annual after-tax incremental earnings?

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