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A firm is considering taking a project that will produce S13 million of revenue per year. Cash expenses will be $6 million, and depreciation expenses will be $2 million per year. If the firm takes that project, then it will reduce the cash revenues of an existing project by $4 million. What is the free cash flow on the project, per year, if the firm is in the 40 percent marginal tax rate?

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M92770897

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