2. Problem 12.02 Click here to read the book: Analysis of an Expansion Project PROJECT CASH FLOW cobsen Communications is trying to estimate the first-year cash now (at Year 1) for a proposed project. The financial staff has collected the following information on the project: A-Z 3 Sales revenues $10 million Operating costs (excluding depreciation) 7 milion Depreciation 2 million Interest expense 2 million The company has a 10% tax rate, and its WACC I 14% Write out your answers completely. For example, 13 million should be entered as 13,000,000, What is the project's cash flow for the first year (t 1) Round your answer to the nearest dollar d. If this project would cannibale other projects by 1 million of cash flow before taxes per year, how would this change your answer to part around your answer to the nearest do The firm's project's cash flow would now be Ignore part b. If the tax rate dropped to 30% how would that change your answer to part a Round your answer to the nearest dollar The firm's project's cash flow would by s