What is project operating cash flow for cairn communication

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

Project Cash Flow

Projected sales $22 million

Operating costs (not including depreciation) $8 million

Depreciation $6 million

Interest expense $5 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: EM132965341

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