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eBook the following information on the project: Sales revenues $ 1 5 million Operating costs 1 3 . 5 million Interest expense 1 million The

eBook
the following information on the project:
Sales revenues $15 million
Operating costs 13.5 million
Interest expense 1 million
The company has a 25% tax rate, and its WACC is 10%.
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 )=(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 dollara
The firm's OCF would now be $
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