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:

Sales revenues $$10$ million

Operating costs $9$ million

Interest expense $2$ million

The company has a $25\%$ tax rate, and its WACC is $14\%.$

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 $(t=1)?$ Round your answer to the nearest dollar.

$

b$.$ If this project would cannibalize other projects by $$0\mathrm{.}5$ million of cash flow before taxes per year, how would this change your

answer to part a$?$ Round your answer to the nearest dollar.

The firm's OCF would now be $