BadRock Corp is evaluating a project with revenues will be $3.5 million and cash expenses will be $1.5 million while depreciation expense will be $400 000 per year, then what is the expected free cash flow per year from taking the project if the company's tax rate  is 30 per cent?

Principles of Accounting Volume 2
19th Edition
ISBN:9781947172609
Author:OpenStax
Publisher:OpenStax
Chapter11: Capital Budgeting Decisions
Section: Chapter Questions
Problem 2PA: Jasmine Manufacturing is considering a project that will require an initial investment of $52,000...
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BadRock Corp is evaluating a project with revenues will be $3.5 million and cash expenses will be $1.5 million while depreciation expense will be $400 000 per year, then what is the expected free cash flow per year from taking the project if the company's tax rate  is 30 per cent?

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