hard · CFA Level I corp
Amberfen Pharma is evaluating a research project with an initial outlay of 100 million. The project has a 4-year life. Depreciation is straight-line to zero over 4 years. The project is expected to generate annual revenues of $80 million and cash expenses of $30 million. The cost of capital is 12% and the tax rate is 25%.
What is the annual incremental after-tax operating cash flow for this project?
- 50.00 million
- 43.75 million
- 37.50 million
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