Question: Project Beta is a project which will last for 3 years and which requires an initial outlay of $6,000. This outlay will be depreciated using

Project Beta is a project which will last for 3 years and which requires an initial outlay of $6,000. This outlay will be depreciated using straight-line depreciation over the life of the project. It will generate incremental revenue of $12000 per year. The value of incremental, after-tax earnings is $3996 per year. The project will require Net Working Capital equal to 10% of incremental revenue. What is the value of incremental free cash flow in Year 0?

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