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: 15 million

Operating costs: 12 million

Interest expense: 1 million

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

What is the projects operating cash flow for the first year (t = 1) ? Round your answer to the nearest dollar.

If this project would cannibalize other projects by $1 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 fir's OCF would now be $