Question: The widget - maker is going to release a new line of widgets. He plans to sell these widgets over the following 6 years. New

The widget-maker is going to release a new line of widgets. He plans to sell these widgets over the following 6 years. New equipment costs will be 73 which will be depreciated over 14 years using straight line depreciation. Incremental fixed costs for the project will be 57 per year. Incremental revenues will be 515 per year. The appropriate tax rate is 32. What will the FCF in year 3 of this project be?

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