The correct option is B, Razor's after-tax OCFs for this project over the years 1-3 is $1,210,000 per year.
After-tax OCF over the year 1 to 3
Annual depreciation=Cost of machine/Life
=$6000,000/3
=$2000,000
Annual after-tax OCF is:
=Incremental sales (1-tax rate) + (Annual depreciation*Tax rate)
=$1000,000(1-0.21) + ($2000,000*0.21)
=$1210,0000
Incremental sales refer to the additional sales volume achieved by a business due to a specific change or event. This could be a change in pricing, a new product launch, or a marketing campaign. Incremental sales can be used to measure the success of a marketing strategy or pricing strategy. For example, if a business launches a new product and sees an increase in sales, the increase in sales is incremental sales.
Incremental sales are a good indicator of whether a company’s marketing or pricing strategies are working. Companies may use incremental sales figures to determine the ROI (return on investment) for a particular strategy. Tracking incremental sales can also help companies identify which strategies are working and which are not, allowing them to focus their efforts on those that are more successful.
To learn more about Incremental sales visit here:
brainly.com/question/29567211
#SPJ4