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Colsen Communications is trying to estimate the first-year cast flow (at Yest 1) for a proposed project. The astets required for the project were fuly

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Colsen Communications is trying to estimate the first-year cast flow (at Yest 1) for a proposed project. The astets required for the project were fuly depreiated 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 2 milioo The company has a 25% tax rate, and its WACC is 11%. 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 (t1) ? Round your answer to the nearest dolar: b. If this project would cannibalize other projects by 50.5 milion of cash flow before taxes per vear, how would this change vour onsmer to part o? hound your answar to the nearest dollar The firm's OCF would now be $

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