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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

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 $20 million Operating costs 18 million Interest expense 1 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.

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