What is the project operating cash flow for the first year

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Reference no: EM131346441

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 $25 million

Operating costs (not including depreciation) 12 million

Depreciation 5 million

Interest expense 4 million

The company faces a 35% 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: EM131346441

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