You are considering whether to start a new 5-year project (Project A). Project A requires the purchase of $500 of equipment that will be depreciated using straight-line depreciation to a zero book value over the project's life. The project also requires $50 for net working capital (NWC), which will be recovered at the end of the project, and will generate revenues from sales in the amount of $250 a year. In the first two years, it is estimated that the new project will have a negative impact on an already existing project (Project B) of yours. In particular, sales from Project B will decrease by $50 in year 1 and by $40 in year 2. Costs of production are $0 for both projects. The tax-rate is 34% and your required rate of return is 20%. What is the incremental cash flow associated to this project?

$17.13

$25.75

$19.39

$22.03

$15.45