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What is the project''s operating cash flow for the first year

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Reference no: EM131102297

Nixon Communications is trying to estimate the first-year operating cash flow (at t = 1) for a proposed project. The financial staff has collected the following information:

Projected sales $10 million

Operating costs (not including depreciation) $7 million

Depreciation $2 million

Interest expense $2 million

The company faces a 40 percent tax rate. What is the project's operating cash flow for the first year (t = 1)?

Reference no: EM131102297

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