CENGAGE MINDTAP Search this chu Chapter 12 - EOC Questions (CNOW) 3 Check My Work (temning 4 6. 7 ebook 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 deprecated at the time of purchase. The financial staff has collected the following information on the project: Sales revenues $25 million Operating costs 22.5 million Interest expense 1 million . The company has a 25% tax rate, and its WACC I 12% Write out your answers completely. For example, 13 million should be entered as 13,000,000 a. What is the project's operating cash flow for the first year it - 1)? Round your answer to the nearest dollar 2462500 8 9. 10 . 11 b. If this project would cannibalize other projects by $0.5 million of cash flow before taxes per year how would this change your answer to parta? Round you answer to the nearest dollar The firm's oCF would now be 1750000 Elide Feedback Incorrect