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What is the free cash flow on the project per year

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Reference no: EM132959373

Problem 1: Technical Solutions Ltd is considering undertaking a project that will produce $20 million of revenue per year. Cash expenses will be $8 million, and depreciation expenses will be $2 million per year. If the firm takes this 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, assuming a 30% tax rate?

Reference no: EM132959373

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