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 Operating costs Interest expense $25 million 20 million 3 million. The company has a 25% tax rate, and its WACC is 13%. 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 $1.5 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 $

Colsen Communicaticns is trying to estimate the first-year cash flow (at Year 1) for a proposed project. The assets required for the project were fuliy depreciated at the time of purchose. The finanoal staff has coliected the following information on the project: The compsny has a 25% tax rase, and its wacC is 13%. Write out your answers completely, For example, 13 million should be entered as 13,000,000. a. What is the project's operating cash fiow for the first year {t=11 ? Round your answer to the nearest dolar b. It this project would cannibalize other projects by $1.5 milion of cash flaw belore taxes per year, how weuld this change your answer to part a? Round your answer to the nearest dolar: The firm's ocF would now be \$