A firm is considering a new project that will generate cash revenue of $1,300,000 and cash expenses of $700,000 per year for five years. The equipment necessary for the project will cost $300,000 and will be depreciated straight line over four years. What is the expected free cash flow in the second year of the project if the firm's marginal tax rate is 35%?
A) $374,625
B) $341,250
C) $416,250
D) $499,500

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C) Annual 11ea84dc_f548_ed12_9a63_11a5f482f66a_TB1316_00_TB1316_00 11ea84dc_f548_ed13_9a63_8fa3728215fb_TB1316_00_TB1316_00

A Firm Is Considering a New Project That Will Generate