Question 4
10 points
Soha's company is taking a project that will produce $2,800,000 of revenue per year. Cash expenses will be $400,000, and depreciation expenses will be $250,000 per year. The firm is in the 40 percent marginal tax rate. If the firm's capital expenditures will be $420,000, the additional working capital $350,000.
? a $680,000
? b $520,000
? c $770,000
? d $700,000