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You are considering a new project that will have annual revenue of $50,000 and annual operating costs of
$27,000. The project will have the initial investment of $39,900. This project is expected to have a 4-year life
and will be depreciated to zero using straight-line depreciation. What is the amount of the operating income
(EBIT) for this project?
A. -$16,900
B. $13,025
C. $23,000
D. $40,025
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