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A year ago
The incremental unlevered net income in the first year for the Sisyphean Corporation's project is closest to:
A) $8000
B) $18,000
C) $5200
D) $11,700
Textbook 
Corporate Finance: The Core
Edition: 4th
Authors:
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wrote...
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A year ago
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C
Explanation:  C) Incremental Earnings Forecast
Year   1   2   3
Units   2000   2200   2420
Sales (units × $18)   36,000   39,600   43,560
Cost of Good Sold (units × $9)   18,000   19,800   21,780
Gross Profit   18,000   19,800   21,780
Depreciation ($30,000/3)   10,000   10,000   10,000
EBIT   8000   9800   11,780
Income tax at 35%   2800   3430   4123
Unlevered net income   5200   6370   7657
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