Find what is the projects operating cash flow

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Project Cash Flow

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                                               $18 million

Operating costs (not including depreciation)           $10 million

Depreciation                                                      $4 million

Interest expense                                                   $3 million

Question 1: The company faces a 25% tax rate. What is the project's operating cash flow for the first year (t = 1)? Enter your answer in dollars. For example, an answer of $1.2 million should be entered as $1,200,000. Round your answer to the nearest dollar.

Reference no: EM132495671

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