What is the project operating cash flow for first year

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Operating 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                                               $20 million

Operating costs (not including depreciation)       7 million

Depreciation                                                    4 million

Interest expense                                              4 million

The company faces a 40% tax rate. What is the project's operating cash flow for the first year (t = 1)? Write out your answer completely. For example, 2 million should be entered as 2,000,000.

$__________

Reference no: EM131924044

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