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What is the project operating cash flow for the first year

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Question - 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) $7 million

Depreciation $4 million

Interest expense $3 million

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: EM132992306

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