(13-2 Operating Cash Flow) The financial staff of Cairn Communications has identified the following information for the first year of the rollout 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)?

the answer is 7 million BUT why ? whats the calculation to get 7 million?