11.2). Operating Cash Flow

The financial staff of Carin 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) $ 9 million

Depreciation $ 4 million

Interest expense $ 3 million

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