SpaceTech is considering a new project with the following projections for Year 2.
Year 2 Projections
EBIT $400,000
Interest Expense $20,000
Depreciation Expense $40,000
Tax Rate 40%
Incremental Net Working
Capital Needs $200,000
A)$130,000
B)$180,000
C)$230,000
D)$280,000

Question

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The Answer of SpaceTech is considering a new project with the following projections for Year 2.
Year 2 Projections
EBIT $400,000
Interest Expense $20,000
Depreciation Expense $40,000
Tax Rate 40%
Incremental Net Working
Capital Needs $200,000
A)$130,000
B)$180,000
C)$230,000
D)$280,000

SpaceTech Is Considering a New Project with the Following Projections