Kurt's Kabinets is evaluating a project that will require $80,000 in fixed assets at year 0. The project is expected to produce sales of $110,000 with associated costs of $70,000 annually. The project has a 4-year life. The company uses straight-line depreciation to a zero book value over the life of the project. The tax rate is 35%. What is the incremental earnings for this project in year 1-4?
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