Expected cash flows: FireRock Wheel Corp is evaluating a project in which there is a 40 percent probability of revenues totalling $3 million and a 60 percent probability of revenues totalling $1 million per year. If cash expenses will be $1.0 million while depreciation expense will be $200,000, then what is the expected free cash flow from taking the project if the company tax rate for the company is 30 percent?

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The Answer of Expected cash flows: FireRock Wheel Corp is evaluating a project in which there is a 40 percent probability of revenues totalling $3 million and a 60 percent probability of revenues totalling $1 million per year. If cash expenses will be $1.0 million while depreciation expense will be $200,000, then what is the expected free cash flow from taking the project if the company tax rate for the company is 30 percent?

Expected Cash Flows: FireRock Wheel Corp Is Evaluating a Project