You are given that a prospective capital project will generate operating revenues of $$100$ million per year. An analyst provides you the following information about the cost of the project: total operating costs will total $$37$ million per year, the feasibility study for the project totaled $$13$ and has already been paid, and the corporate income tax rate is $40\%.$ Assuming zero CCA depreciation, zero net working capital requirements, and zero capital expenditure requirements, what is the annual free cash flow generated by the project $($in $millions$)?$

Question $4$Answer

a$.$

$37\mathrm{.}80$

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b$.$

$30\mathrm{.}00$

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c$.$

$45\mathrm{.}60$

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d$.$

$34\mathrm{.}68$

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e$.$

$40\mathrm{.}92$