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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 depreciated at the time of purchase. The financial staff has collected the following information on the project:

$\backslash$table$[[$Sales revenues,$$10$ million$],[$Operating costs $8$ million,$],[$Interest expense $3$ million,$]]$

The company has a $25\%$ tanate$,$ and its WACC is $12\%.$

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