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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

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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 deprecated 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 3 milion 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 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 $

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