Project Beta is a 7-year project which requires an initial outlay of $6,000.  This outlay will be depreciated using straight-line depreciation over the life of the project.  It will generate incremental revenue of $2400 per year and incremental costs (excluding depreciation) of $300.  The tax rate is 35%. What is the project's annual after-tax incremental earnings? Question 3Answer a. $135 b. $808 c. $251 d. $435

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Q: 16

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