What is the expected incremental free cash flow

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Question - A proposed new project has the following expected amounts for Year 4 of operations:

Revenue: $86,000

Costs (not including CCA): $36,000

Capital Cost Allowance: $14,000

Change in net working capital: $6,000

Additional capital investment: $7,000

If the firm pays 25% corporate taxes, what is the expected incremental free cash flow for Year 4 of this project?

Reference no: EM133176104

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