5 #10

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: The company has a 25% tax rate, and its wace is 13%. Write out your answers completely. For example, 13 millien sheuld be entered as 13,000,000. a. What is the project's operating cash flow for the first year (t=1) ? found your answer to the nearest doliac. D. If this project would cannibblize other projects by $1.5 milton of cash fow before taxes per yeac, how would this change your answer to part a? Round vour answer to the nearent dollar: The firm's OCF would now be 5