Use the Information for the Question(s) Below

question 1

Multiple Choice

Use the information for the question(s) below.
Shepard Industries is evaluating a proposal to expand its current distribution facilities. Management has projected the project will produce the following cash flows for the first two years (in millions) .

-The incremental EBIT for Shepard Industries in year two is closest to:

• A) $415
• B) $875
• C) $595
• D) $510

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