Colsen Communications is trying to estimate the first-yea 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 $20 million

Operating costs 10 million

interest expens

1 million

The company has a 25% tax rate. and its WACC is 12%

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 proiect would cannibalize other projects by $1 million of cash flow before taxes per year, now would this change your answer to part a? Round your answer to the nearest dollar.

The firm's OCF would now be $