Calculate free cash flow on the project

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Apple, Inc. is considering taking a project that will produce $12 million of revenue per year. Cash expenses will be $5 million and depreciation expenses will be $1.75 million per year. If the firm takes that project, then it will reduce the revenues of an existing project by $3 million. What is the free cash flow on the project, per year, if the firm is in the 28% marginal tax rate?

Reference no: EM133112053

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