Question: Project Beta is a project which will last for 3 years and whichrequires an initial outlay of $4,000.This outlay will be depreciated usingstraight-line depreciation over

Project Beta is a project which will last for 3 years and whichrequires an initial outlay of $4,000.This outlay will be depreciated usingstraight-line depreciation over the life of theproject.It will generate incremental revenue of $8000 per year.The value of incremental, after-tax earnings is $2664 per year.The project will require Net Working Capital equal to 15% of incremental revenue.

What is the value of incremental free cash flow in Years 1 to 3?

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