CathFoods will release a new range of candies which contain anti-oxidants. New equipment to manufacture...
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CathFoods will release a new range of candies which contain anti-oxidants. New equipment to manufacture the candy will cost $2 million, which will be depreciated by straight-line depreciation over four years. In addition, there will be $5 million spent on promoting the new candy line. It is expected that the range of candies will bring in revenues of $4 million per year for five years with production and support costs of $1.5 million per year. If CathFood's marginal tax rate is 35%, what are the incremental earnings in the second year of this project? O A. $0.700 million OB. $1.400 million O c. $1.300 million OD. $2.000 million
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