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What is the project operating cash flow for the first year

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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$22 million

Operating costs (not including depreciation)$9 million

Depreciation$4 million

Interest expense$4 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: EM132912796

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