What is the project annual tax payable

Reference no: EM132702881

Project Beta is a 4-year project which requires an initial outlay of $2,000. This outlay will be depreciated using straight-line depreciation over the life of the project. It will generate incremental revenue of $2000 per year and incremental costs (excluding depreciation) of $400. The tax rate is 30%.

Problem 1: What is the project's annual tax payable?

Select one:

a. $420
b. $330
c. $770
d. $180

Reference no: EM132702881

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