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Determine what is project operating cash flow for first year

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Reference no: EM132965948

The financial staff of Cairn Communications has identified the following information for the first year of the roll-out of its new proposed service:

Projected sales: $24 million
Operating costs (not including depreciation): $8 million
Depreciation$4 million
Interest expense $3 million

Problem 1: The company faces a 25% tax rate. What is the project's operating cash flow for the first year (t = 1)?

Reference no: EM132965948

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