1 Project L requires an initial outlay at t 0 of $64,000, its expected cash inflows are $12,000 per year for 6 years, and its WACC is 13 What is the project's payback Round your answer to two decimal places years 2 Colsen Communications is trying to estimate the first year cash flow (at Year 1) for a proposed project The assets required for the project were fully depreciated at the time of purchase The financial staff has collected the following information on the project Sales revenues $15 million Operating costs 13 5 million Interest expense 2 million The company has a 25 tax rate, and its WACC is 12 Write out your answers completely For example, 13 million should be entered as 13,000,000 What is the project's operating cash flow for the first year (t 1) Round your answer to the nearest dollar $ If this project would cannibalize other projects by $1 million of cash flow before taxes per year, how would this change your answer to part a Round your answer to the nearest dollar The firm's OCF would now be $ Please answer both questions

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1. Project L requires an initial outlay at t = 0 of $64,000, its expected cash inflows are $12,000 per year for 6 years, and

1. Project L requires an initial outlay at t = 0 of $64,000, its expected cash inflows are $12,000 per year for 6 years, and its WACC is 13%. What is the project's payback? Round your answer to two decimal places.

______ years

Colsen Communications is trying to estimate the first-year cash flow (at Year 1) for a proposed project. The assets required for the project were fully depreciated at the time of purchase. The financial staff has collected the following information on the project:

Sales revenues	$15 million
Operating costs	13.5 million
Interest expense	2 million

The company has a 25% tax rate, and its WACC is 12%.

Write out your answers completely. For example, 13 million should be entered as 13,000,000.

What is the project's operating cash flow for the first year (t = 1)? Round your answer to the nearest dollar. $
If this project would cannibalize other projects by $1 million of cash flow before taxes per year, how would this change your answer to part a? Round your answer to the nearest dollar. The firm's OCF would now be $ . Please answer both questions.