CF will release a new range of candies which contain antioxidants. new equipment to make the candy will cost $4 million, which will be depreciated by straight line depreciation over fove 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 $6 million per uear for five years with production and support costs of $1.5 million per year. if CFs marginal tax rate is 35%, what are the incremental free cash flows in the second year of this project?
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