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A company is trying to estimate the first-year cash flow (at Year 1) for a proposed project. The financial staff has collected the following information
A company is trying to estimate the first-year cash flow (at Year 1) for a proposed project. The financial staff has collected the following information on the project:
Sales | $18.8 million |
Optg costs (Excluding Depreciation) | $11.1 million |
Depreciation | $2.4 million |
Interest Expense | $1.6 million |
The company has a 40% tax rate, and its WACC is 11%. What is the project's cash flow in year 1? Express your answer in millions and round to the nearest decimal place. (For example, if you answer is $13.26 million, enter 13.3)
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