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Corriedale Ltd plan to introduce a new line of organicallyproduced wool for textile production. The new wool will generateincremental revenues of $57,000 per year for 8 years. Theincremental operating costs of producing the wool are projected tobe $20,000 per year. As a result of the new type of wool, demandfor Corriedale’s other products will decrease significantly.Corriedale estimate that EBITDA from other product lines will fallby $10,000 per year as customers switch to the organic wool. Theinitial capital expenditure to purchase wool processing equipmentwill be $70,000. Producing and distributing the new wool willincrease the working capital requirements of the business by $4,000for the life of the project. This investment in working capitalwill be fully recovered when the new wool is discontinued in 8years. For tax purposes, the wool processing equipment can bedepreciated on a straight-line basis to zero over 8 years.Corriedale expect that at the end of the 8 years the scrap value ofthe equipment will be $12,000. Corriedale face a corporate tax rateof 30%. Compute the net incremental cash flow for the new organicwool for its final year (only the final year is required).