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Firehouse Company is investing in a €300 million project that is being depreciated on a straight-line basis over a two-year life with no salvage value. The project will generate operating earnings of €130 million each year for the two years. The required rate of return for the project is 10% and Firehouse’s tax rate is 30%. What is Firehouse’s economic income for years 1 and 2?
A.
B.
C.
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