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    After Tax Incremental Cash Flow

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    A project is estimated to generate $5,000 in incremental gross profit, which includes $200 in depreciation. Incremental SG&A expense is $400. At a 35% tax rate, what is the after-tax incremental cash flow? Should the project be accepted or rejected?

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    Incremental gross profit = $5000
    (-) Incremental SG&A expense ...

    Solution Summary

    This solution discusses after tax incremental cash flow.